In the long run, monopolistic competitive firms are considered to be operating inefficiently because their
A) economic profits are positive.
B) economic profits are zero.
C) average total costs are not at a minimum.
D) marginal costs are rising.
C
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Explain the long-adjustment process that take place in a monopolistically competitive industry that is earning pure economic profits
What will be an ideal response?
In the Gordon Growth Model, the growth rate is assumed to be ________ the required return on equity
A) greater than B) equal to C) less than D) proportional to
Suppose the economy is in equilibrium when there is a change in environmental policy that bans all pesticides and herbicides on farmland. We would expect to observe
A. a decrease in aggregate supply and an increase in aggregate demand. B. a decrease in both real output and the natural rate of unemployment. C. a decrease in real output and an increase in the price level. D. a decrease in real output and an increase in the natural rate of unemployment.
Refer to the given data. The domestic opportunity cost of 1 fish in Scandia is:
Answer the question on the basis of the following production possibilities data for Landia and Scandia:
A. 12 chips.
B. 4 chips.
C. 3 chips.
D. 1 chip.