In the long run in monopolistic competition, the demand curve facing the typical firm

In the long run in monopolistic competition, the demand curve facing the typical firm
 a. is perfectly elastic
  b. slopes upward
  c. is tangent to the firm's average total cost curve
  d. lies above the firm's average total cost curve
  e. is the same as the portion of the firm's marginal cost curve above average variable cost

QUESTION 2

One result of voters' rational ignorance is that
 a. cyclical majorities are more common
  b. vote trading is common
  c. majority rules
  d. special interests often dominate legislation
  e. members of Congress go along with whatever their constituents want

QUESTION 3

If the firms in a monopolistically competitive industry are earning short-run profit, which of the following is not likely to occur in the long run?
 a. New firms will enter the industry.
  b. New firms in the industry will draw customers away from existing firms.
  c. Existing firms in the industry will face a decrease in demand.
  d. Firms will continue to earn profit.
  e. Firms will produce with some excess capacity.

QUESTION 4

The American Association of Retired Persons (AARP) provides checklists summarizing the voting and attendance records of legislators. Which of the following is true?
 a. If the AARP's members were rational, it wouldn't have to do this.
  b. This policy is useless if AARP members are rationally ignorant.
  c. This policy is intended to reduce voters' rational ignorance by decreasing the cost of information.
  d. If AARP members read this information, their rational ignorance would be eliminated.
  e. If all voters in the nation read this information, their rational ignorance would be eliminated.

QUESTION 5

If the firms in a monopolistically competitive industry are suffering short-run losses, which of the following will occur in the long run?
 a. Some firms will enter the industry.
  b. Customers of firms that leave the industry will switch to remaining firms.
  c. Firms that remain in the industry will face reduced demand.
  d. Firms will continue to incur losses.
  e. There will be no excess capacity.

QUESTION 6

Because information and the time required to acquire and digest it are scarce,
 a. consumers concentrate on private choices rather than on public choices
  b. consumers concentrate on public choices rather than on private choices
  c. it is irrational for consumers to remain ignorant of the costs and benefits of government proposals
  d. consumers have greater incentive to gather and act upon information about public choices than to gather and act upon information about their private choices
  e. an individual voter has more incentive to examine the performance records of candidates for public office

QUESTION 7

A permanent decrease in demand for convenience store services is likely to cause which of the following in the long run?
 a. an economic loss for each firm
  b. a higher price for each firm's output
  c. fewer firms in the industry
  d. more firms in the industry
  e. economic profit for each firm