For the monopolistically competitive firm, in both the short run and the long run
A. price will exceed marginal cost.
B. the demand curve is inelastic.
C. there will be no economic profit.
D. production will be at minimum average cost.
Answer: A
You might also like to view...
If all consumers are price-takers facing the same prices, then their budget lines will all have the same slope.
Answer the following statement true (T) or false (F)
Firms have tried a number of different strategies to reduce the negative effects of competition on their ability to earn economic profits
Which of the following strategies is most desirable from the viewpoint of economic efficiency and consumer well being? A) Collusion. B) Price leadership. C) Formation of cartels. D) Investment in research and development.
The total stock of capital will always increase when
a. depreciation is zero. b. investment is greater than depreciation. c. investment is greater than population growth. d. investment is positive. e. depreciation is greater than investment.
Balanced across the board, U.S. income growth characterizes the period of the:
A. entire 20th century. B. 1960's to 1990's. C. mid 1940's to the early 1970's. D. 1980's to the present.