In monopolistic competition as well as in monopoly,
a. price exceeds marginal revenue for each firm.
b. profit is zero in a long-run equilibrium for each firm.
c. entry and exit by firms are unrestricted.
d. there are at most a few firms in each market.
a
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With international trade, a country will export tires. Prior to international trade, the quantity of tires produced in the country ________ the quantity of tires consumed in the country
A) must be more than B) must be less than C) might be more than, less than, or equal to D) must equal
Under a system of financial penalties for polluters:
a. Firms could pollute all they wanted to. b. Firms would have to pay a tax for each unit of pollution created. c. Firms would be encouraged to pollute less. d. All of the above are correct.
The Lucas supply function, in combination with the assumption that expectations are rational, implies that if a monetary policy change is announced to the public
A. the change in real output will be negative. B. the change in real output will be positive. C. there will be no change in real output. D. Both A and B are possible, depending on they type of monetary policy change that has been announced.
How would a substantial appreciation in the European euro in the foreign exchange market affect the quantity of imports of European products by the U.S.? How would such an appreciation of the European euro affect travel by Americans to Europe?
What will be an ideal response?