Even though monopolistic competition results in inefficiency, it does have which of the following benefits for society?
A) Firms earn zero economic profit in the long run.
B) Firms can earn an economic profit in the short run.
C) Product variety benefits consumers.
D) Marginal cost equals price in the long run.
E) The premise of the question is incorrect because nothing in monopolistic competition justifies any economic inefficiency.
C
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Explain the concept of zero lower bound
What will be an ideal response?
Increases in the debt—GDP ratio are primarily caused by
A) a high growth rate of GDP. B) a high government deficit relative to GDP. C) increases in government borrowing through bonds. D) increases in interest rates.
The official poverty measurements include a family's "in-kind" income
Indicate whether the statement is true or false
Assume Alan's budget constraint is demonstrated by line A in the graph shown. Which of the following could cause Alan's budget constraint to change to line B?
A. Alan could have experienced a drop in income.
B. The price of books could have increased.
C. Alan could have decided he doesn't like going to the movies as much as he used to.
D. The price of movie tickets could have increased.