In the long run, firms in monopolistic competition become price takers
Indicate whether the statement is true or false
FALSE
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Refer to Figure 11-11. If the firm chooses to produce and sell 25,000 frames per month by operating in the short run with a scale operation represented by ATCc
A) the firm would lower its average costs by reducing its scale of operation. B) the firm will not be able to earn a profit. C) the firm will be operating efficiently. D) the firm will not be operating efficiently.
A consumer buys food (F) and shelter (S). If the consumer's income rises and there is no change in the prices of F or S, the marginal rate of transformation of F for S will
A) increase. B) decrease. C) stay the same. D) change, but there is not enough information to know how.
As price rises, quantity supplied ____________.
Fill in the blank(s) with the appropriate word(s).
Which of the following is the best definition of what economists define as total income?
A) payment for labor services B) payment for labor services and for ownership of other factors of production C) payment for labor services, for use of other factors of production, and gifts and government transfers D) inheritance