Compared to a perfectly competitive firm having the same cost curves, a monopolistically competitive firm ________ output and ________ prices.
A. raises; raises
B. reduces; reduces
C. reduces; raises
D. raises; reduces
Answer: C
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The Diamond-Dybvig model provides a rationale for the phenomenon of
A) undercapitalized banks. B) banks making overly risky loans. C) bank runs. D) deflation.
In an economy in which velocity of money in circulation is constant and real output grows at an average rate of 3 percent per year, a 5 percent average rate of growth in the money supply would result in a: a. constant price level
b. slowly increasing price level. c. slowly decreasing price level. d. stable 4 percent growth in real GDP. e. stable 4 percent growth in nominal GDP.
Why would someone contribute money to a 501(c) group?
A. to make a contribution using someone else's name or under a false identity B. to ensure that the money is used on advertising C. so that the funds would be matched by the federal government D. to avoid having his or her name disclosed as a donor
The long run supply curve for an increasing cost industry is:
a. horizontal. b. upward sloping. c. vertical. d. downward sloping.