Monopolistically competitive firms are productively inefficient because production occurs where:
A. average total cost is greater than the minimum average total cost.
B. marginal cost is greater than marginal revenue.
C. marginal cost is less than marginal revenue.
D. average total cost is less than the difference between average total cost and average variable cost.
Answer: A
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A country's GNP is always larger than its GDP
Indicate whether the statement is true or false
Excessive unemployment of resources is illustrated using a production possibilities curve by: a. an inward shift of the curve
b. an outward shift of the curve. c. a movement along the curve in a northwest direction. d. a point inside the curve.
Table 10-1 Aggregate Quantity Aggregate Quantity ? Demanded Supplied Price (billions) (billions) Level $3500 $2900 65 3400 3000 75 3350 3150 90 3250 3250 110 3100 3400 130 In Table 10-1, if full employment occurs at $3,100 billion, then
A. the economy experiences a recessionary gap of $150 billion. B. the economy experiences a recessionary gap of $300 billion. C. the economy experiences an inflationary gap of $150 billion. D. the economy experiences an inflationary gap of $300 billion.
The Motor Carrier Act of 1980 resulted in:
A. lower freight prices. B. more firms entering the trucking industry. C. lower value of a trucking license. D. All of these are correct.