Monopolistically competitive firms in long-run equilibrium produce at ________ the optimal scale.
A. exactly
B. less than
C. more than
D. sometimes more and sometimes less than
Answer: B
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If firms are more optimistic that future profits will rise and remain strong for the next few years, then
a. investment spending will fall. b. investment spending will rise. c. investment spending will remain unaffected. d. investment spending will rise and then fall.
A decrease in unplanned inventory investment for the entire economy equals the excess of
A) output over aggregate supply. B) output over aggregate demand. C) aggregate supply over output. D) aggregate demand over output.
Which of the following would cause movement along an aggregate demand curve, all other things being held constant?
a. a price level hike b. a wage level hike c. a change in disposable income d. a change in consumer confidence
The breakfast cereals industry can be best modeled using the model of
A. monopoly. B. perfect competition. C. oligopoly. D. monopolistic competition.