In the long run,
a. monopolistically competitive firms earn a higher profit than perfectly competitive firms because monopolistically competitive firms have some monopoly power.
b. monopolistically competitive firms produce a higher output than perfectly competitive firms because competition drives the perfectly competitive firms' output down.
c. both monopolistically competitive and perfectly competitive firms produce where P = MC.
d. both monopolistically competitive and perfectly competitive firms produce where P = ATC.
d
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In which of the following statements are the terms "demand" and "quantity demanded" used correctly?
A. When the price of ice cream rose, the demand for both ice cream and ice cream toppings fell. B. When the price of ice cream rose, the quantity demanded of ice cream fell, and the demand for ice cream toppings fell. C. When the price of ice cream rose, the demand for ice cream fell, and the quantity demanded of ice cream toppings fell. D. None of these statements use the terms correctly.
Automatic stabilizers have the effect of
A. increasing aggregate demand during a recessionary gap. B. increasing long-run aggregate supply during a recessionary gap. C. increasing aggregate demand during an inflationary gap. D. increasing long-run aggregate supply during an inflationary gap.
Long-run equilibrium for a monopolistic competitor is characterized by
A. marginal cost pricing. B. economic profits. C. too few firms in the industry. D. a price exceeding marginal cost.
Which of the following statements accurately reflects research findings on the distribution of colonial wealth?
a. The poorest 20 percent of colonist controlled nearly 20 percent of colonial wealth. b. Distributional inequality tended to be greater in rural areas than in cities, particularly in New England. c. Colonial wealth was distributed more unequally in the Middle colonies than in the South or New England. d. The opportunity for income mobility was probably greater in the colonies than in England.