Suppose that the men's suit business is monopolistically competitive. It follows that in equilibrium, the marginal revenue of any firm in the industry:
A. has no relation to price.
B. is less than the price.
C. is equal to the price.
D. is greater than the price.
Answer: B
You might also like to view...
In the long run, all of the following are true for a monopolist EXCEPT
A) P > ATC. B) P = MC. C) MR = MC. D) P > AVC.
One way for a company like McDonalds to overcome principal-agent problems is to advertise for franchisees
a. True b. False
Demand-pull inflation is most pronounced during a recession (as opposed to the recovery phase of the business cycle)
a. True b. False Indicate whether the statement is true or false
Which of the following statements about positive economic analysis is true?
A) Positive analysis uses an economic model to estimate the costs and benefits of different course of actions. B) There is much less disagreement among economists over normative economic analysis than over positive economic analysis. C) There is much more disagreement among economists over positive economic analysis than over normative economic analysis. D) Unlike positive economic analysis, normative economic analysis can be tested.