A monopolistically competitive firm maximizes profit by producing where marginal revenue equals marginal cost.
Answer the following statement true (T) or false (F)
True
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Answer the following statement(s) true (T) or false (F)
1. A firm seeks to product at a point where an isocost is tangent to a isoquant. 2. Cost minimization requires that the marginal product of labor equal the marginal product of capital. 3. A point on the firm's expansion path both minimizes the cost of producing a given output level and maximizes the output obtained for a given expenditure level. 4. All points on the expansion path have the same marginal rate of technical substitution. 5. In the long run there is no distinction between average cost and average variable cost.
In monopolistic competition, each firm has a demand curve with a ________ and there ________ barriers to entry into the market
A) negative slope; are no B) slope equal to zero; are no C) negative slope; are D) slope equal to zero; are
The quantity supplied of a good is the amount that a. buyers are willing and able to purchase
b. sellers are able to produce. c. buyers and sellers agree will be brought to market. d. sellers are willing and able to sell.
In the circular-flow diagram, which of the following items flows from firms to households through the markets for the factors of production?
a. goods and services b. land, labor, and capital c. dollars spent on goods and services d. wages, rent, and profit