Monopolistic competition in long-run equilibrium is characterized by
a. excess capacity.
b. higher cost per unit of output than under perfect competition.
c. inefficiency in use of resources.
d. All of the above are correct.
d
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The firm's short run supply curve is equal to the
A) entire marginal cost curve. B) marginal cost curve above the AVC curve. C) marginal cost curve above the ATC curve. D) marginal cost curve above the AFC curve.
Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the short run would be:
A. P3 and Y1. B. P2 and Y1. C. P2 and Y3. D. P1 and Y2.
Economists usually use the term "recession" to refer to:
A. any slowdown in the growth of real GDP. B. zero real GDP growth. C. two or more consecutive quarters of declining real GDP. D. a reduction in nominal GDP lasting more than six months.
Refer to the information provided in Table 21.4 below to answer the question(s) that follow. Table 21.4
Refer to Table 21.4. The value for GNP in billions of dollars is
A. 900. B. 930. C. 980. D. 1,010.