In the long run, equilibrium for a monopolistically competitive firm resembles equilibrium for a monopoly in the sense that
a. both types of firms are able to earn economic profits
b. marginal cost exceeds marginal revenue
c. price equals marginal cost
d. price exceeds marginal cost
e. average revenue exceeds price
D
You might also like to view...
Refer to Common Property II. If the common property is privately owned, the owner earns revenue equal to
a. Area C + D. b. Area F + G. c. Area C + D + F + G. d. zero.
Suppose the demand for hamburgers increases. In the short run, firms that produce hamburgers will experience a rise in prices, which will induce them to
A) increase production and decrease the number of workers. B) decrease production and increase the number of workers. C) decrease production and decrease the number of workers. D) increase production and increase the number of workers.
A change in government purchases shifts the aggregate demand curve by an amount equal to the
A) change in consumption X marginal propensity to consume. B) change in government purchases X money multiplier. C) change in government purchases X spending multiplier. D) change in the spending multiplier X change in government purchases.
If a bank receives a $7,500 deposit and the required reserve ratio is 20%, how much of this deposit can be loaned out?
a) $1,500 b) $2,000 c) $6,000 d) $7,500