Monopolistic competition is considered inefficient because
a. price exceeds marginal cost.
b. output is excessive.
c. long-run profits are positive.
d. barriers to entry limit the number of firms in the market.
a
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The cars produced by Toyota in its factory in Kentucky ________ in U.S. GDP and ________ in U.S. GNP
A) count, count B) count, do not count C) do not count, count D) do not count, do not count
The reserve ratio is the ratio of: a. Federal Reserve member banks to nonmember banks. b. Federal Reserve nonmember banks to member banks. c. Federal Reserve member banks to all U.S. banks
d. a bank's total deposits to its reserves. e. a bank's reserves to its total deposits.
If businesses forecast significant economic growth in the future, they may: a. decrease their investment spending. b. increase their investment spending
c. decrease their consumption spending. d. increase their consumption spending.
If a technological advance makes it possible to produce computers at a lower cost:
A. the demand for computers increases. B. the demand for computers decreases. C. the supply of computers increases. D. the supply of computers decreases.