Compared to a perfectly competitive firm, in a long run the monopolistically competitive firm will have
A. a lower rate of output.
B. a lower average cost.
C. a lower price.
D. a horizontal demand function.
Answer: A
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Profit maximization implies that firms will want to ________
A) accumulate capital while the MPK is greater than the real wage B) accumulate capital while the MPK is greater than the rental price of capital C) accumulate labor while the MPK is greater than the rental price of capital D) accumulate labor while the MPK is greater than the real wage E) none of the above
Demand for inputs is a derived demand because:
a. it is derived from the need for income b. it corresponds to the derived supply of the inputs. c. the demand for output leads producers to demand inputs used to produce finished goods. d. of the diminishing marginal product of inputs.
The earnings of highly educated workers:
A. rise more slowly than those of less-educated workers. B. rise more rapidly than those of less-educated workers. C. rise at about the same rate as those of less-educated workers. D. stagnate earlier than do those of less-educated workers.
Microeconomics is the study of
What will be an ideal response?