Monopolistically competitive firms exist due to high barriers to entry.
Answer the following statement true (T) or false (F)
False
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The above table shows the short-run production function for Albert's Pretzels. The average product of labor
A) increases first and then decreases. B) decreases first and then increases. C) decreases throughout. D) increases throughout.
Stationarity means that the
A) error terms are not correlated. B) probability distribution of the time series variable does not change over time. C) time series has a unit root. D) forecasts remain within 1.96 standard deviation outside the sample period.
If real salaries decrease but norminal salaries do not this means that
A) the purchasing power of money has decreased. B) prices have not changed. C) prices have risen. D) prices have fallen.
Because a monopolist has no incentive to control costs under a policy of average-cost pricing, we can expect:
A. price to increase over time as costs rise. B. price to fall over time as costs rise. C. profits to increase over time as costs rise. D. profits to decrease over time as costs rise.