It has been argued that in the long run monopolistic competition is inefficient because
A) there are too many firms, each with excess capacity, producing too little output.
B) there are few many firms, each with excess capacity, producing too much output.
C) minimum average total costs are achieved but price exceeds marginal cost.
D) minimum average total costs are not achieved and marginal cost exceeds price.
A
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Refer to the payoff matrix below. In reference to the Nash equilibrium/equilibria in this game, which of the following is true?
Camp with Us and Happy Campers compete in the market for campers. Each firm must decide each season if they are going to offer special financing or not. The above payoff matrix shows each firm's net economic profit at each pair of strategies.
A) There is one Nash equilibrium in this game.
B) There are two Nash equilibria in this game.
C) There are no Nash equilibria in this game.
D) There are three Nash equilibria in this game.
The minimum efficient scale of a firm:
A. is the smallest level of output at which long-run average total cost is minimized. B. is in the middle of the range of constant returns to scale. C. occurs where marginal product becomes zero. D. is realized somewhere in the range of diseconomies of scale.
The Great Depression ended in the United States when
A. the New Deal reforms were initiated by President Roosevelt. B. deficit spending ended in 1937. C. the United States returned to the gold standard in 1940. D. the United States began to mobilize for war in the early 1940s. E. the German economy suffered hyperinflation in the 1920s.
The rational expectations theorists have taken up two key items on the conservative economists' agenda: (1) _________ and (2) ____________.
Fill in the blank(s) with the appropriate word(s).