Monopolistic competition is similar to
a. perfect competition, in that firms face downward-sloping demand curves and earn zero long-run economic profit
b. pure monopoly, in that firms face downward-sloping demand curves and can earn economic profits both in the short run and in the long run
c. perfect competition, in that firms face perfectly elastic demand curves and earn zero long-run economic profit
d. pure monopoly, in that firms can earn economic profits both in the short run and in the long run, and similar to perfect competition, in that firms face perfectly elastic demand curves
e. pure monopoly, in that firms face downward-sloping demand curves, and similar to perfect competition, in that long-run economic profit is zero
E
You might also like to view...
Since 1900, real GDP per capita in the United States has ________ in the short run and has ________ in the long run
A) fluctuated; displayed a strong upward trend B) remained fairly stagnant; grown considerably C) decreased more often than it has increased; increased more often than it has decreased D) grown at a stable and consistent rate; wildly fluctuated
One example of gradualism is taking place in
a. China b. the United Nations c. New Zealand d. Japan e. France
In a 2007 New York Times article Paul Krugman wrote that
a. the infant-industry argument works well as an argument in favor of protection for the U.S. steel industry. b. the negative effects of third world exports on U.S. wages may be increasing. c. there are social gains to the U.S. from free trade. d. high wage countries account for a growing share of U.S. imports of manufactured goods.
A labor contract provides for a first-year wage of $15 per hour, and specifies that the real wage will rise by 2 percent in the second year of the contract and by another 2 percent in the third year. The CPI is 1.00 in the first year, 1.09 in the second year, and 1.15 in the third year. What dollar wage must be paid in the third year?
A. $15.61 B. $17.95 C. $15.00 D. $17.24