When a market is monopolistically competitive, the typical firm in the market can earn
a. losses in the short run and profits in the long run.
b. profits in the short run and the long run.
c. losses in the short run and zero profit in the long run.
d. zero profit in the short run and losses in the long run.
c
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Liquidity refers to
A) the number of times a dollar changes hands in the creation of GDP in an economy. B) the number of shares of stock a corporation issues. C) the ease with a stock can be traded for a bond. D) the ease with which a financial security can be traded for cash.
An economy in which output has decreased and prices have decreased would suggest a:
A. decrease in short-run aggregate supply. B. increase in aggregate demand. C. increase in short-run aggregate supply. D. decrease in aggregate demand.
How much is induced consumption when disposable income is $4 trillion?
A. 0
B. $1 trillion
C. $2 trillion
D. $2.5 trillion
Recall the Application about the demand and price for margarine to answer the following question(s).Recall the Application. The reason that the change in demand for margarine did not change the equilibrium price in the long run is because the margarine industry is an example of ________ industry.
A. a decreasing-cost B. an increasing-cost C. a constant-cost D. a negative-cost