Long-run equilibrium for a monopolistic competitor is characterized by
A) a price exceeding marginal cost.
B) marginal cost pricing.
C) economic profits.
D) too few firms in the industry.
Answer: A
You might also like to view...
A tax on a product will yield little revenue if
a. supply is elastic b. supply is inelastic c. demand is inelastic d. demand is elastic e. no tax in a developing country will yield significant revenue
If price rises, what happens to quantity demanded for a product?
a. It increases. b. It decreases. c. It does not change. d. Uncertain-economic theory has no answer to this question.
Most tax payments increase as GDP increases.
Answer the following statement true (T) or false (F)
If the government increases its spending but does NOT raise taxes
A. the government will have to raise expenditures or lower taxes the next year. B. the government will have to borrow funds. C. aggregate demand will increase without any effect on the price level. D. the government will have to reduce the money supply.