1. Price for a firm under monopolistic competition is:

A) equal to marginal revenue.

B) greater than marginal revenue.

C) less than marginal revenue.

D) greater than total revenue.

2. An industry with a large number of relatively small firms producing differentiated products in a market with easy entry and exit firms is:

A) a monopoly.

B) a duopoly.

C) an oligopoly.

D) one of monopolistic competition.

3. Figure: Perfectly Competitive Firm

(Figure: Perfectly Competitive Firm) The figure shows a perfectly competitive firm that faces demand curve d, has the cost curves shown, and maximizes profit. If the firm faces a market price of $3.00, its total profit per day is:

A) zero.

B) $250.

C) $275.

D) $300.

4. Refer to the above data for a monopolist. This firm will maximize its profit by producing:

A) 3 units.

B) 4 units.

C) 5 units.

D) 6 units.