In long-run equilibrium, a monopolistically competitive firm's demand curve will be tangent to its average cost curve
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
The LM curve becomes steeper if there is __________ in the interest-sensitivity of __________ demand
A) an increase; money B) an increase; investment C) a decrease; money D) a decrease; investment
Explain how the short-run industry supply curve for a perfectly competitive market is derived.
What will be an ideal response?
If aggregate expenditures are lower than real GDP:
A. actual real output is less than equilibrium real output. B. aggregate output increases. C. employment increases. D. there will be unplanned increases in inventories.
According to the World View chart in the text, from highest to lowest real GDP, which is correct?
A. United States, China, Germany, Japan, Canada. B. United States, China, Japan, Germany, Britain. C. USA, China, Japan, Germany, Britain. D. United States, Japan, China, Germany, Britain.