Monopolistic competition and monopoly have all of the following in common EXCEPT
A) P > MC.
B) firms are price setters.
C) barriers to entry.
D) MR = MC.
C
You might also like to view...
What is the effect on real GDP per person if labor productivity increases? What is the effect on the nation's standard of living?
What will be an ideal response?
If marginal revenue is less than marginal costs
A) production should be decreased. B) production should be decreased and profits will grow. C) production should be decreased and losses will decrease. D) all of these choices are possible.
Consider the monopolistic competition, entry, and exit curve. Which of the following would cause both the perceived demand curve and the marginal revenue curve to shift to the right?
a. Gains induce new firms to leave the industry, causing demand from the original firm to fall. b. Gains induce new firms to leave the industry, causing demand from the original firm to rise. c. Losses induce firms to leave the industry, causing demand from the original firm to fall. d. Losses induce firms to leave the industry, causing demand from the original firm to rise.
If aggregate demand increases by the amount of the recessionary GDP gap and aggregate supply is upward-sloping,
A. The economy will move to full employment. B. An AD surplus will occur. C. An inflationary GDP gap will develop. D. A recessionary GDP gap will still exist.