The monopolistically competitive firm will charge a price which is more than that charged by a perfectly competitive firm
a. True
b. False
Indicate whether the statement is true or false
True
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Logan finds $10 in his jacket pocket and deposits it into a bank. As a result of this single transaction, M1 has
A) increased by more than $10. B) increased by $10. C) not changed. D) increased by less than $10.
Assume that a seller in a perfectly competitive market charges more than competitors are charging. It is likely that this seller will:
A) increase his profit. B) increase his sales. C) lose only a few buyers. D) lose almost all of his buyers.
If there are diseconomies of scale within a given range of output, which of following is(are) TRUE?
A) The short-run average cost curve must be upward sloping within that range of output. B) The long-run average cost curve must be upward sloping within that range of output. C) Long-run average cost must equal short-run average cost. D) All of the above.
In general, when the price of a variable factor of production increases:
A. marginal cost rises. B. the profit-maximizing price falls. C. the profit maximizing level of output rises. D. total cost falls.