Monopolistic competition means: a firms are in perfect competition but they coll

Question

Monopolistic competition means: a firms are in perfect competition but they collude similar to monopolies. firms have downward-sloping demand. oligopoly firms collude until they become monopolies. firms differentiate their output, which makes them price-makers. but barriers to entry are low or nonexistent. firms are in a monopoly but they compete. Successful advertising: normally causes industry demand to shift left. normally causes consumers to buy things for which they have no use. normally causes demand for the firm to shift right. generally causes a firm's costs to fall. generally causes industry costs to fall. Refer to the accompanying graph. To maximize profit, the monopolistically competitive firm shown will charge a price per unit of:

Explanation / Answer

9. D is correct, the remaining are wrong

10. C is correct, the demand for goods will be increase with succesful advertising

11. 30 is the profitable price

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