An important distinction between perfect competition and monopoly is that in
A. perfect competition, the firm is the industry.
B. monopoly, the firm faces the market demand curve.
C. monopoly, the firm produces less than the total quantity supplied.
D. perfect competition, there is no distinction between the firm and the industry.
Answer: B
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A monopolistically competitive firm in long-run equilibrium:
A) will make negative profit. B) will make zero profit. C) will make positive profit. D) Any of the above are possible.
The price system takes into account consumer preferences in the distribution of goods and services.
Answer the following statement true (T) or false (F)
What is the title of the John Maynard Keynes's book published in 1936 that challenged the classical self-correction economic theory?
a. In the Long-run We Are Dead. b. Classical Economics Revised. c. General Theory of Employment, Interest, and Money. d. A Keynesian Approach to Economic Policy.
When a household owns shares of stock, _____
a. it has ownership rights in that firm b. it is entitled to the majority of the firm's profits c. it is liable to bear the entire loss faced by the firm d. it can consume the firm's products without paying for it e. it is responsible for correcting any defect in the product identified by the customers