The long run outcome of the monopolistically competitive firm:
A. does not maximize profits.
B. occurs where price equals marginal cost.
C. creates welfare loss.
D. maximizes total surplus.
Answer: C
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The price that U.S. consumers pay for goods imported from Mexico has fallen and the quantity of U.S. imports from Mexico has ________
Because of these changes, the winners are U.S. ________ of goods imported from Mexico and the losers are U.S. ________ of goods imported from Mexico. A) increased; consumers; producers B) decreased; producers; consumers C) increased; producers; producers D) increased; producers; consumers E) decreased; consumers; producers
In the long run, the prices charged by a firm in monopolistic competition will be
A. high enough to provide profits to the firm. B. so low that many firms will drop out of the industry. C. equal to marginal cost. D. equal to average cost, including the opportunity cost of capital.
The curve that shows the relationship between the price of a good and the quantity that consumers are willing to purchase at each price is the
a. supply curve. b. demand curve. c. production possibilities curve. d. consumption curve.
The primary legislative branch of the European Union is called the
A) European Commission. B) European Parliament. C) European Council of Ministers. D) Council of the European Union.