Which of the following is true for perfect competition but not true for monopolistic competition and monopoly?
A. P = MC and positive long run profits
B. Positive long run profits
C. P = MC
D. MC = MR
Answer: C
You might also like to view...
If the nominal interest rate in an economy is 6% and the inflation rate in the economy is 10%, then the real interest rate is:
A) -6%. B) 10%. C) 6%. D) -4%.
The forward exchange rate is relevant to transactions ________
A) that require an immediate transfer of funds B) that require a future transfer of funds C) that involve a transfer of funds within a corporate entity D) crossing state lines
Advocates of discretionary policy make which of the following criticisms of the economy’s “self-correcting” mechanism?
A. It is slow. B. It is not very reliable. C. It works only when supplemented by automatic stabilizers. D. All of these responses are correct. E. Options a and b only are correct.
Over the last few decades, Americans have chosen to cook less at home and eat more at restaurants. This change in behavior, by itself, has
a. reduced measured GDP. b. not affected measured GDP. c. increased measured GDP by the value of the restaurant meals. d. increased measured GDP by the value added by the restaurant's preparation and serving of the meals.