In the monopolistic competition model, firms earn zero economic profits in long-run equilibrium
a. True
b. False
Indicate whether the statement is true or false
True
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Answer the following statement(s) true (T) or false (F)
1. A Paasche price index makes price changes seem better for the consumer than they really are. 2. A Laspeyres price index is based on the basket consumed in the later period.. 3. If the consumer has the same tax bill under a head tax as under an income tax, then the consumer will be indifferent between the two taxes. 4. If the consumer has the same tax bill under a head tax as under an income tax, then less leisure will be consumed under the head tax than under the income tax. 5. The cardinal utility approach has exactly the same implications as the indifference curve approach.
The lottery this evening is worth $50 million dollars in your state. There are two people in your neighborhood that are buying lottery tickets. One is a student with little financial knowledge or business acumen
The other is a successful entrepreneur that is earning 20% rate of return on his business. Which of these people is likely to check off the "cash" option on the ticket and which is likely to choose the structured payout and why?
Consider the Battle of the Sexes game:
Jim- wrestling Jim - opera Joan - wrestling 2, 1 0, 0 Joan - opera 0, 0 1, 2 Suppose both players use mixed strategies for this game. Jim chooses wrestling with probability 0.9, and Joan chooses wrestling with probability 0.5. What are the expected payoffs for the players? A) The expected payoffs are 0.95 for Joan and 0.55 for Jim B) The expected payoffs are 0.55 for Joan and 0.95 for Jim C) The expected payoffs are 0.95 for both players D) The expected payoffs are 0.55 for both players
What is typically used for cross country comparisons of GDP?
a. purchasing power parity (PPP) b. exchange rate c. GDP per capita d. GDP