Which of the following is NOT a TRUE statement about perfectly competitive and monopolistically competitive firms?
A) Both monopolistically competitive and perfectly competitive firms have perfectly elastic demands.
B) In the long run, only monopolistically competitive firms have excess capacity.
C) Perfectly competitive firms produce at their efficient scale.
D) There are a large number of firms in both monopolistically competitive and perfectly competitive markets.
A
You might also like to view...
Define wealth, or net worth
What will be an ideal response?
The IS curve ________ when the real interest rate increases
A) shifts to the right B) shifts to the left C) shifts up D) all of the above E) none of the above
The net investment income from abroad is U.S. investment earnings from foreign assets minus what?
a. foreigners earnings from their U.S. assets b. foreigners earnings from investments at home c. U.S. investors stock market earnings d. U.S. bondholders earnings from interest abroad
If a system of emission charges forces firms to internalize all external costs:
A.) Relative prices of polluting activities will rise. B.) The elimination of externalities will fully compensate for any excessive market power. C.) The elimination of externalities will allow greater production of all goods and services. D.) Pollution will increase.