A monopolistically competitive firm's marginal revenue curve
A. is downward-sloping and coincides with the demand curve.
B. does not exist because the firm is a "price maker."
C. is downward-sloping and lies below the demand curve.
D. coincides with the demand curve and is parallel to the horizontal axis.
Answer: C
You might also like to view...
The real business cycle theory is based on all of the assumptions below EXCEPT
A) flexible wages. B) flexible prices. C) pure competition. D) small menu costs.
Asymmetric information problems arise
A) in horizontally integrated firms, but not vertically integrated firms. B) in vertically integrated firms, but not horizontally integrated firms. C) in both vertically and horizontally integrated firms. D) only in firms that do not have the advantage of either horizontal or vertical integration. E) only when a single firm is both horizontally and vertically integrated.
The price system is sometimes criticized in that it
A. leads to greater efficiency. B. results in allowing the rich get a disproportionate say in what goods and services are produced. C. coordinates activities without the need for planning by government agencies. D. relies too heavily on input-output analysis.
James is responsible for the upkeep of the neighborhood garden. To keep the garden well-maintained, he allows only the senior citizens of the neighborhood into the garden for early morning walks and exercise. The garden is an example of a(n) ____
a. merit good b. club good c. public good d. inferior good