In a long-run equilibrium,
a. only a perfectly competitive firm operates at its efficient scale.
b. only a monopolistically competitive firm operates at its efficient scale.
c. neither a competitive firm nor a monopolistically competitive firm charges a markup over marginal cost.
d. both a perfectly competitive firm and a monopolistically competitive firm operate at their efficient scale of production.
a
You might also like to view...
On the production possibilities curve, a movement between points that yields a loss of one good in order to raise the output of another good will maintain efficient production
a. True b. False Indicate whether the statement is true or false
Assume that the Paris First National Bank's loan position contracted from $16 million to $12 million. If the required reserve ratio was increased from 20 percent to 40 percent, how much would the money supply shrink?
a. $5 million. b. $10 million. c. $15 million. d. $20 million. e. $24 million.
In most business situations where firms compete, often they can escape the prisoner's dilemma and reach the most profitable outcome. Which of the following is a reason for this?
A) Firms engage in aggressive advertising to overcome the barriers to loyalty. B) Most games are one-shot games so firms learn from their mistakes. C) Most games are repeated games and firms can employ retaliation strategies against those who do not cooperate. D) Firms are constantly improving their products and anticipating changing consumer tastes.
Refer to the information provided in Table 22.3 below to answer the question(s) that follow. Table 22.3 PointAggregate Income (Y)Aggregate Consumption (C) A 15 19 B 30 23 C 45 27 D 60 31 E 75 35 F 90 39The data in the table was used to estimate the following consumption function: C = 20 + 0.2YRefer to Table 22.3. The error for point C is equal to
A. -2. B. 0. C. +2. D. +4.