Under the conditions of monopolistic competition:

A. prices are always lower in the long run than in the short run.
B. firm profits are always higher in the long run than in the short run.
C. average costs of production are always higher in the short run than in the long run.
D. None of these is correct.


Answer: D

Economics

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Monopolization of both the labor market and the output market results in

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Which of the following statements is correct?

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The theory of new Keynesian inflation dynamics suggests that a fall in aggregate demand would

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Economics