The equilibrium price charged by a monopolistic competitor in the long run after the entry of new firms is ________
A) higher than the equilibrium price charged by the firm before the entry of new firms
B) lower than the equilibrium price charged by the firm before the entry of new firms
C) lower than the equilibrium price charged by a perfectly competitive firm in the long run
D) equal to the equilibrium price charged by the firm before the entry of new firms
B
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Use the aggregate expenditures model and assume the marginal propensity to consume (MPC) is 0.90 . A decrease in government spending of $1 billion would result in a decrease in GDP of:
a. $0. b. $0.9 billion. c. $1.0 billion. d. $9.0 billion. e. $10.0 billion.
A quarter is an example of commodity money because the metal used to manufacture it has some value
a. True b. False Indicate whether the statement is true or false
According to the text, the annual cost to the United States from its anti-dumping policies is equivalent to a deadweight loss of _____ uniform tariff applied across all imports.
a. a 1% b. a 6% c. a 10% d. a 15%
What happened to government expenditure levels in 2009?
a. They reached record lows for wartime. b. They reached record highs for peacetime. c. They created a recession. d. They ended a recession.