Which of the following is generally true of a monopolistic competitor operating in the long run?
a. price equal to minimum average total cost
b. marginal cost exceeds marginal revenue
c. marginal revenue exceeds marginal cost
d. price exceeds marginal cost
d
You might also like to view...
Given a price elasticity of demand of -0.8, a decrease in price will
A) reduce total revenue. B) increase total revenue. C) leave total revenue unchanged. D) decrease quantity.
Rank these three items in terms of the elasticity of the demand for them at any given price, from most elastic to least elastic: hot beverages, coffee and Peet's Coffee
A) hot beverages, coffee, Peet's Coffee B) coffee, Peet's Coffee, hot beverages C) Peet's Coffee, coffee, hot beverages D) coffee, hot beverages, Peet's Coffee
Refer to Table 4-12. The equations above describe the demand and supply for Bubba's Fried Jellybeans. The equilibrium price and quantity for Bubba's Fried Jellybeans are $40 and 5 thousand units. What is the value of consumer surplus?
A) $5 thousand B) $12.5 thousand C) $25 thousand D) $37.5 thousand
According to the quantity theory of money, a decision on the part of all business firms currently paying employees on a monthly basis to begin paying on a weekly basis would be expected to
A. increase velocity and increase nominal GDP. B. increase velocity and decrease nominal GDP. C. decrease velocity and increase nominal GDP. D. decrease velocity and decrease nominal GDP.