To maximize profit, a firm in a competitive market increases output until:

Which are features of monopolistic competition?I. few sellersII. free entryIII. product differentiation

Figure: Monopoly Profits 1What is the monopolist’s optimal price and output level?

Total revenue is:

Figure: Demand CurveWhat is the maximum price per book that buyers are willing to pay for 2,500 books?

Figure: Market EquilibriumAccording to the figure, the equilibrium price and quantity are $:

Self-interest aligns with the social interest when:

According to the story that opens the chapter, paying captains of prisoner transport ships for each convict who arrived in Australia instead of for each convict who boarded the ship:

Monopolists earn _____ profits in the long run.

_______ describes how loud the volume can go without distortion.