Monopolistically competitive firms prevent the efficient use of resources because in long-run equilibrium,
A. price is less than marginal cost.
B. price equals marginal cost.
C. marginal cost is greater than average total cost.
D. price is greater than marginal cost.
Answer: D
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Strategic decision making is most likely to occur in which market structure?
A. Oligopoly B. Monopolistic competition C. All firms engage in strategic decision making. D. Perfect competition
Refer to the graph shown. What price represents the shutdown price?
A. P1 B. P2 C. P3 D. P4
The contention that tariffs should be imposed to protect from import competition an industry that is trying to get started is
A) a basic argument for free trade. B) the infant industry argument. C) dumping. D) a voluntary restraint agreement.
A company town model changes the market form from that of perfect competition to that of a
A. monopolistic competition. B. monopoly. C. oligopoly. D. monopsony.