In the long run, prices in a monopolistically competitive industry ________ prices without trade.
a. will be higher than
b. will be lower than
c. will be equal to
d. will be the same as
Ans: b. will be lower than
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The above figure shows the U.S. market for wheat. Without international trade, producer surplus is equal to ________
A) area B + area C + area E + area F B) area A C) area B + area C +area D + area E + area F D) area E + area F E) area A + area B + area C + area D
At the current level of output, the marginal social benefit from a slice of pizza is less than the marginal social cost of producing a slice of pizza
Resources will be used more efficiently if ________ slices of pizza are produced and ________ other goods are produced. A) fewer; fewer B) more; fewer C) more; more D) fewer; more
The ______________is a period of production long enough for producers to adjust the quantities of all of their resources.
Fill in the blank(s) with the appropriate word(s).
Exhibit 3A-1 Comparison of Market Efficiency and Deadweight Loss
As shown in Exhibit 3A-1, if the market price falls from $2.00 to $1.00, then:
A. total surplus increases. B. deadweight loss increases. C. overproduction decreases. D. underproduction decreases.