In the long run, a firm in monopolistic competition has its price equal to ________ and also has its price ________
A) marginal cost; exceeding its average total cost.
B) marginal cost; equal to its average total cost
C) average total cost; exceeds its marginal cost
D) average total cost; less than its marginal cost
C
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Which of the following statements about economic models is TRUE?
A) A good economic model is complex. B) A good model does not rely on any assumptions. C) Every model is based on a set of assumptions. D) Economic models are designed to explain what people need.
Decreasing the reserve requirement ratio is
A) a contractionary policy because it lowers the amount of total reserves in the banking system. B) a contractionary policy because it lowers the amount of excess reserves in the banking system. C) an expansionary policy because it raises the amount of excess reserves in the banking system. D) an expansionary policy because it raises the amount of required reserves in the banking system.
Pure monopoly is able to exist because the firm's product is better than the substitutes that are available in the market
a. True b. False Indicate whether the statement is true or false
The gravity model predicts that China and India will trade with
A) smaller economies that are close by. B) larger economies that are close by. C) larger economies that are distant. D) smaller economies that are distant.