Which of the following is TRUE for a monopolistically competitive firm?
A. MR = AFC
B. MR > P
C. MR < P
D. MR = P
Answer: C
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If policymakers in an open economy want to increase the wealth of their citizens, should they seek to increase saving, or to increase investment? Explain
What will be an ideal response?
Refer to the graph above. If the price of the product decreases from $6 to $5 because of a decrease in demand (not shown), total revenue would:
A. increase by $300. B. decrease. C. increase by $100. D. stay the same.
"The invisible hand" is really the ____________.
Fill in the blank(s) with the appropriate word(s).
Michael Potter argued that ____ led to firms earning economic profit over extended periods of time
A) the ease of substitution B) market power C) the extent of consumer power D) degree of competition from foreign tariffs