For a monopolistically competitive firm ________ at the profit-maximizing quantity, the demand curve must be tangent to the average total cost curve.
A. to shut down
B. suffering short-run losses
C. in long-run equilibrium
D. earning short-run profits
Answer: C
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As an MNC based in the country of Westeros, suppose your firm currently has positive exposure to the Valerian pound. With expanding input needs, you expect to take on a substantial negative exposure to the Quarthian dollar. The Valerian pound and Qarthian dollar are negatively correlated. As such your firm's overall exchange rate exposure is expected to
The role of prices in a market economy is to
a. make producers rich at the expense of consumers b. replicate what society produced in the past c. determine the allocation of resources d. enforce what the government chooses e. force consumers to pay for business profits
Monopolistic competition is a market structure in which
A) a small number of firms compete. B) firms produce identical products. C) firms compete only on product price. D) firms are free to enter and exit the market.
The dollar value of the maximum amount one can consume over a given period without reducing the value of one's wealth is the _____
a. definition of income used to approximate in-kind benefits b. Fisher definition of income c. Laffer definition of income d. Haig-Simons definition of income