The long-run equilibrium of a monopolistic competitor lies on:
a. the minimum point of the average total cost curve
b. the downward-sloping portion of the average total cost curve.
c. the upward-sloping portion of the average total cost curve.
d. the minimum point of the marginal cost curve.
b
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Which of the following increases the quantity supplied of good X but does NOT increase the supply of good X?
A) a fall in the price of a factor production used to produce X B) an advance in the technology for producing X C) an increase in the price of good Y, a complement in the production of X D) an increase in the price of X
The closer the exchange price is to the valuation of the buyer, the greater the buyer's share of the economic value created by the exchange
Indicate whether the statement is true or false
A problem with third-party financing of so much of health care is that
A) it reduces the quality of health care received by most people. B) it discourages physicians from getting second opinions and running enough tests to be sure the right procedure is followed. C) it causes the demand for medical services to increase, which causes health care costs to increase. D) it discourages people from relying on the judgments of physicians in making decisions about health care.
When a national security crisis forces the government to draft workers, this often results in price increases because the supply curves of most goods shift to the left. The people who suffer the price-increase consequences mostly are
a. those who are drafted b. farm goods suppliers because they have less to supply c. consumers of farm goods because farm goods are basic goods d. the rich because they can afford to pay the higher prices, but they pay substantially more e. the poor because they are priced out of the markets