The profit-maximizing output of a monopolistic competitor is determined at the point of intersection of the demand curve and the marginal cost curve
a. True
b. False
Indicate whether the statement is true or false
False
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The infant industry argument is valid when
A. a new industry is suffering financial losses. B. a new industry is less efficient than foreign competitors. C. the industry’s prospective gains are sufficient to repay the social losses incurred while it is being protected. D. the industry is not likely to be profitable in the future.
The principle of comparative advantage is associated with
a. restricting consumer choices. b. greater production at higher prices. c. specialization and exchange. d. comparing the efficiency of alternative tariffs.
Does Europe constitute an optimal common currency area? Why?
What will be an ideal response?
Utility is
A) easily measured in units called utils. B) subjective and difficult to measure. C) the consumption of a quasi-public good like electricity or natural gas. D) the production of a quasi-public good like electricity or natural gas.