Which of the following is not a characteristic of a monopolistically competitive firm in long-run equilibrium?
A) Price is equal to average revenue. B) The firm has excess capacity.
C) Marginal revenue is equal to marginal cost. D) Price is equal to marginal cost.
D
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In monopolistic competition, the products of different sellers are
A) identical. B) similar but slightly different. C) unique without any close or perfect substitutes. D) perfect substitutes. E) either identical or differentiated.
A federal surplus is deflationary when all else is held constant
Indicate whether the statement is true or false
An increase in the money supply causes output to rise in the long run
a. True b. False Indicate whether the statement is true or false
If the inverse demand curve a monopoly faces is p = 100 - 2Q, then profit maximization
A) is achieved when 25 units are produced. B) is achieved by setting price equal to 25. C) is achieved only by shutting down in the short run. D) cannot be determined solely from the information provided.