In the short run, a monopolistically competitive firm
A. May make economic profits, but it fails to make economic profits in the long run because of the entry of new firms.
B. May make profits just as it does in the long run because firms can enter easily.
C. Makes profits just as it does in the long run because entry is blocked.
D. Produces at a rate at which long-run average cost equals price, but not at which long-run marginal cost equals marginal revenue.
Answer: A
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A sales commission is charged for the purchase of
A) no-load mutual funds. B) load mutual funds. C) sinking mutual funds. D) syndicated funds.
A $1 increase in autonomous spending has a multiplier effect greater than one on total expenditures and output because
A) each expenditure is respent in the same amount continuously. B) overtime expenditures tend to increase. C) total expenditures include autonomous expenditures. D) each time an expenditure occurs the recipient respends a proportion of the funds.
The slope of the aggregate demand curve illustrates that as the price level rises,
a. real GDP demanded decreases. b. real GDP demanded increases. c. the aggregate demand curve shifts rightward. d. the aggregate demand curve shifts leftward.
In the foreign exchange market, what could be a possible consequence of an increase in the purchase of stocks of Toyota, a Japanese automobile firm, by U.S. residents?
A. Demand for the dollar will increase B. Yen will depreciate C. The supply curve for the dollar will shift to the left D. The dollar will depreciate