In the long-run, in a monopolistically competitive market:
a. marginal revenue is greater than average revenue.
b. price equals marginal cost.
c. price equals minimum average total cost.
d. the firms earn positive economic profits.
e. resources are inefficiently allocated .
e
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Arnold Harberger was the first economist to estimate the loss of economic efficiency due to market power. Harberger found that
A) the loss of economic efficiency in the U.S. economy due to market power was small around 1973, about 1 percent of the value of production, but has since grown to about 10 percent. B) because of the increase in the average size of firms since World War II, the loss of economic efficiency has been relatively large, about 10 percent of the value of total production in the United States. C) the loss of economic efficiency in the U.S. economy due to market power was less than 1 percent of the value of production. D) although the number of monopolies was small, the large number of other non-competitive firms in the United States resulted in a large loss of economic efficiency, about 20 percent of the value of total production.
The most severe remaining debt problems are in
a. Latin America. b. Africa c. East Asia d. Western Europe e. none of the above
Which of the following is not included in Nation A's financial account?
a. Foreign deposits of funds in savings accounts in Nation A. b. Purchases and sales of marketing assets. c. Foreign purchases of Nation A's Treasury bills. d. All the above.
The high productivity of the U.S. economy results from using highly educated workers in a capital-intensive production process.
Answer the following statement true (T) or false (F)