If regulators required firms in monopolistically competitive markets to set price equal to marginal cost,
a. firms would most likely experience economic losses.
b. firms would also operate at their efficient scale.
c. new firms would likely to enter the market.
d. the most efficient firms would not likely to be affected.
a
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The reason that the Fisherman's Friend restaurant in Stonington, Maine had a monopoly on selling seafood dinners in that town is most likely due to
A) no competitors apparently found the profit level attractive enough to enter the market. B) the restaurant owned all the fresh seafood in the state. C) a government-imposed barrier. D) occupational licensing.
Keynesians and monetarists share the belief that
a. recessions are caused by falls in aggregate demand. b. the demand for money is stable. c. excess demand is a chronic problem in modern economies. d. the Federal Reserve is responsible for most recessions. e. stabilization policy is beneficial.
Which of the following is likely to have the most price inelastic demand?
a. mint-flavored toothpaste b. toothpaste c. Colgate mint-flavored toothpaste d. a generic mint-flavored toothpaste
Explain why the optimal amount of pollution is often not zero
What will be an ideal response?