In monopolistic competition
A) firms can earn long-run economic profit due to product differentiation.
B) firms are unable to earn economic profit over the long run.
C) firms can only earn accounting profits over the long-run.
D) firms can block entry.
B
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The data in the table above shows the consumption by families in a small (poor) economy. The families consume only salt and bread. The reference base period is 2011. The CPI in 2012 is
A) 118.8 B) 123.1 C) 100. D) 18.8 E) 23.1
Which of the following is true?
a. Decision making should never be centralized b. When decentralizing decision making, figure out a way to transfer information to the decision maker c. When decentralizing decision making, strengthen incentive compensation schemes d. When decentralizing decision making, weaken incentive compensation schemes
A simultaneous $10 million increase in both taxes and government spending will have no net effect on aggregate demand
a. True b. False Indicate whether the statement is true or false
Cournot duopolists face a market demand curve given by P = 90 - Q where Q is total market demand. Each firm can produce output at a constant marginal cost of 30 per unit. If the duopolists behave as a shared monopoly, the equilibrium price and total quantity of output will be
A. Q = 45, P = 45. B. Q = 30, P = 60. C. Q = 40, P = 50. D. Q = 60, P = 30.