The equilibrium output produced by a monopolistic competitor in the long run after the entry of new firms is ________
A) higher than the equilibrium output produced by the firm before the entry of new firms
B) lower than the equilibrium output produced by the firm before the entry of new firms
C) higher than the equilibrium output produced by a perfectly competitive firm in the long run
D) equal to the equilibrium output produced by the firm before the entry of new firms
B
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The Fed raises the federal funds rate. Which of the following changes takes the longest time before it occurs?
A) Quantity of money decreases. B) Exchange rate rises. C) Supply of loanable funds decreases. D) Aggregate demand decreases. E) Short-term interest rates rise.
If all conditions for a perfectly competitive market are met,
A) firms face sunk cost when entering the market. B) firms' demand curves are horizontal. C) the market demand curve is horizontal. D) the firms' demand curves are downward-sloping.
A monopsonist wants to purchase more labor. Which of the following statements is TRUE?
A) The wage rate that the monopsonist has to pay future workers is lower than it pays current workers since there is no other place to work. B) The wage rate that the monopsonist has to pay future workers will be the same rate it pays current workers. C) The wage rate that the monopsonist has to pay future workers is higher than what it will continue to pay current workers. D) The monopsonist will have to raise the wage rate for current and additional employees.
Resources are used only in the production of goods, not services
a. True b. False