The theory of monopolistic competition predicts that in long-run equilibrium a monopolistically competitive firm will:
A. produce the output level at which price equals long-run marginal cost.
B. operate at minimum long-run average cost.
C. overutilize its insufficient capacity.
D. produce the output level at which price equals long-run average cost.
Answer: D
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To answer the following question, please refer to the figure below. Concentrating only at the lower right quadrant, discuss the effects of a change in U.S. expected inflation
What will be an ideal response?
If inflation in country A exceeds inflation in country B, purchasing power parity implies that:
A. the inflation rate in country B will rise to match the inflation rate in country A. B. the inflation rate in country A will fall to match the inflation rate in country B. C. the currency of country A will depreciate relative to the currency of country B. D. the currency of country B should depreciate relative to the currency of country A.
The _____________ of an event happening is, the relative frequency with which it occurs.
Fill in the blank(s) with the appropriate word(s).
The aggregate demand curve is the relationship between the:
A. price level and the distribution of real domestic output. B. price level and the purchasing of real domestic output. C. price level and the sales of producers. D. real domestic output bought and the real domestic output sold.