Since a firm in a monopolistically competitive market faces a
a. downward-sloping demand curve, it will always operate with excess capacity.
b. downward-sloping demand curve, it will always operate at its efficient scale.
c. perfectly elastic demand curve, it will always operate with excess capacity.
d. perfectly inelastic demand curve, it will always operate at its efficient scale.
a
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Barriers to entry are forces that:
A. promote a more efficient allocation of resources across the economy. B. limit the government from intervening in markets. C. limit consumers from purchasing new products. D. limit new firms from joining an industry.
A fiscal stimulus works to close a recessionary gap by shifting the
A) AD curve leftward. B) AS curve leftward. C) AD curve leftward and AS curve leftward. D) AD curve rightward. E) potential GDP line leftward.
Prior to 1973, the world operated on a system of fixed exchange rates called the Bretton Woods system
a. True b. False Indicate whether the statement is true or false
The United States 2007 Gross-Public-Debt to GDP ratio is
a. similar to the ratios in most of the OECD countries b. considerably higher than it is in most OECD countries c. considerably lower than it is in most OECD countries d. considerably higher than it was in 1990 e. considerably lower than it was in 1990