In the long run, firms in a monopolistically competitive market operate:
A. at less than full capacity.
B. on an efficient scale.
C. at lowest average total costs possible.
D. at full capacity.
Answer: A
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Price discrimination occurs when a firm
A) charges customers different prices for different goods. B) is able to sell different units of a good at different prices. C) charges customers the same price for different goods. D) can determine which of the many market equilibrium prices it will charge. E) has a marginal cost curve that is horizontal.
As Sally increases her consumption of a good, she experiences diminishing marginal utility if her total utility
A) increases at a constant rate. B) increases at a decreasing rate. C) increases at an increasing rate. D) decreases.
What decisions must a firm make to maximize profit?
What will be an ideal response?
The functions carried out by the Federal Reserve Banks include
a. supervising member banks in their districts. b. serving as fiscal agents for the federal government. c. supplying money in the form of Federal Reserve notes. d. All of these.