Monopolistically competitive firms have an incentive to:
A. engage in tactics for bringing in more customers.
B. advertise.
C. engage in brand promotion.
D. All of these statements are true.
D. All of these statements are true.
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Refer to Figure 4-5. The figure above represents the market for pecans. Assume that this is a competitive market. At a quantity of 12,000 pounds
A) the marginal cost of pecans is greater than the marginal benefit; therefore, output is inefficiently high. B) the marginal benefit of pecans is greater than the marginal cost; therefore, output is inefficiently high. C) the marginal cost of pecans is greater than the marginal benefit; therefore, output is inefficiently low. D) producers should lower the price to $3 in order to sell the quantity demanded of 12,000.
Which of the following is not true about the composition of GDP in 2014?
A) Imports are greater than exports. B) Business fixed investment is the largest component of investment. C) Purchases made by state and local governments are greater than purchases made by the federal government. D) The majority of consumer spending is on durable goods.
A monopsonist faces an upward-sloping labor supply curve. This means that his marginal expenditures on labor are
A) greater than the wage. B) equal to the wage plus the increase in the wage resulting from hiring one more unit of labor hired. C) greater than the wage because hiring more workers requires to pay all workers more. D) All of the above.
Which of the following is true for a monopolistically competitive firm in the long run? a. The average cost curve of the firm lies below the marginal cost curve. b. The firm earns zero economic profit
c. The demand curve of the firm coincides with the marginal revenue curve. d. The firm earns positive economic profit.