In the long run, a monopolistic competitor
A) sets MR = MC.
B) produces where P = AC.
C) sets P > MC.
D) All of the above.
D
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The president of which Federal Reserve bank is always a voting member of the Federal Open Market Committee?
A) Philadelphia B) Boston C) Chicago D) New York
If the market price is $2.75 and a perfectly competitive firm is producing 1,100 units and the marginal cost to produce the 1,100th unit is $2.75, which of the following is true?
A) The firm is not maximizing profit. B) The difference between marginal revenue and marginal cost (MR - MC) for the 500th unit is zero. C) The difference between marginal revenue and marginal cost (MR - MC) for the 500th unit is positive. D) The difference between marginal revenue and marginal cost (MR - MC) for the 500th unit is negative.
If Billy's reservation price on a snowboard is $250, how many snowboards would he buy if the market price of snowboards is $500?
A. 0 B. 1 C. 2 D. The amount of snowboards purchased would depend on Billy's income.
If we consider the equation PAE = A + bY the part that corresponds to the MPC when we make simplifying assumptions is:
A. Y B. PAE C. b D. A