Which of the following is true in long-run equilibrium for a firm in monopolistic competition?
A) MC = ATC.
B) MC > ATC.
C) MC < ATC.
D) Any of the above may be true.
C
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One year, the government boosted regulated taxi fares in New York City by 15 percent with the expectation that the total revenue from taxi rides would also increase by 15 percent
The taxi commission that authorized this fare increase must have believed that the demand for taxi service was A) elastic, but not perfectly elastic. B) inelastic, but not perfectly inelastic. C) unit elastic. D) perfectly inelastic.
Refer to Table 18-3. The table above outlines the rankings of three members of the U.S. Senate on three spending alternatives
Assume that Congress can spend additional revenue on only one of the three spending alternatives and that Bart, Lisa, and Maggie, all members of the Senate, participate in a series of votes in which they are to determine which of the spending alternatives should receive funding. Three votes will be taken: (1 ) Immigration Reform and Unemployment Benefits (2 ) Immigration Reform and Social Security Reform and (3 ) Unemployment Benefits and Social Security Reform.
If there is limited commitment and the government is no better at collecting on its debts than is the private sector, then
A) Ricardian equivalence holds. B) the private sector can benefit from a government loan program. C) Ricardian equivalence does not hold. D) the Fisher relation does not hold.
If a monopolist is producing at the profit-maximizing level of output, what price will it charge?
a. The price given by the marginal-revenue curve at that level of output. b. The price given by the marginal-cost curve at that level of output. c. The price given by the average-cost curve at that level of output. d. The price given by the average-revenue curve at that level of output. e. The price given by the total revenue curve at that level of output.