21) Refer to Figure 15.1. If Dom's Barber Shop is maximizing profit, its total revenue equals A) $200. B) $320. C) $350. D) $360. Answer: B Diff: 2 22) Refer to Figure 15.1. If Dom's Barber Shop is maximizing profit, its total costs are A) $200. B) $240. C) $350. D) $360. Answer: B 23) Refer to Figure 15.1. From society's point of view, the efficient level of output is A) 20 haircuts. B) 23 haircuts. C) 25 haircuts. D) 30 haircuts. Answer: C 24) Refer to Figure 15.1. In this industry, in the long run, A) firms will continue to earn economic profits. B) firms will enter until all firms earn a normal profit. C) demand for the product will decrease so that profits are decreased. D) the government will impose price controls to eliminate any economic profits. Answer: B Refer to the information provided in Figure 15.2 below to answer the questions that follow. Figure 15.2 25) to Figure 15.2. The profit-maximizing number of perms for We Do Hair, a monopolistically competitive firm, is A) 60. B) 50. C) 46. D) 40.
21) Refer to Figure 15.1. If Dom's Barber Shop is maximizing profit, its total revenue equals A) $200. B) $320. C) $350. D) $360. Answer: B Diff: 2 22) Refer to Figure 15.1. If Dom's Barber Shop is maximizing profit, its total costs are A) $200. B) $240. C) $350. D) $360. Answer: B 23) Refer to Figure 15.1. From society's point of view, the efficient level of output is A) 20 haircuts. B) 23 haircuts. C) 25 haircuts. D) 30 haircuts. Answer: C 24) Refer to Figure 15.1. In this industry, in the long run, A) firms will continue to earn economic profits. B) firms will enter until all firms earn a normal profit. C) demand for the product will decrease so that profits are decreased. D) the government will impose price controls to eliminate any economic profits. Answer: B Refer to the information provided in Figure 15.2 below to answer the questions that follow. Figure 15.2 25) to Figure 15.2. The profit-maximizing number of perms for We Do Hair, a monopolistically competitive firm, is A) 60. B) 50. C) 46. D) 40.
ch15_monopolistic-competition.docx