Unlike a perfectly competitive firm, a monopolistically competitive firm
A. faces a perfectly inelastic demand curve.
B. can earn positive economic profit in the short run and in the long run.
C. cannot earn positive economic profit even in the short run.
D. has a negatively sloped demand curve.
Answer: D
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Each point on the Phillips curve represents a combination of the:
a. consumption rate and the unemployment rate. b. savings rate and the inflation rate. c. interest rate and the savings rate. d. inflation rate and the unemployment rate.
The key to understanding the money creation process is the fact that:
A. since the money supply excludes cash but includes checking account deposits, money is created whenever individuals deposit cash into a checking account. B. whenever banks create financial assets for themselves, they create financial liabilities for individuals, and those financial liabilities are considered money. C. whenever banks create financial liabilities for themselves, they create financial assets for individuals, and those financial assets are considered money. D. banks are able to print dollar bills and add these to circulation whenever they extend loans.
A decrease in regulation will cause
A. AS to increase (move down and to the right). B. AD to decrease (move to the left). C. AD to increase (move to the right). D. AS to decrease (move up and to the left).
The data presented in the text shows that in the period from 1947-2013, real GDP in the United States has:
A. increased substantially. B. decreased in every year since 1947. C. decreased only in recent years. D. generally remained the same.