Microeconomics and macroeconomics use different units of analysis

Suppose a monopolistically competitive firm is producing at the profit-maximizing output level and is receiving a price that is sufficient to cover only its average variable cost. If the price falls further the firm should suspend its operations

a. True b. False Indicate whether the statement is true or false

Which of the following could be threatening to an existing monopoly structure?

a. impossible-to-overcome barriers to entry b. the depletion of alternative resources that could be used to produce the good that is being produced by the monopolist c. the extension of years enforcing a patent right d. mergers e. technological innovation that makes the old techniques of producing a good obsolete