When demand is perfectly elastic, marginal revenue is
A) zero.
B) equal to price.
C) declining.
D) increasing.
B
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Even if all individual demand curves are downwardly sloped, the market demand curve may slope upward.
Answer the following statement true (T) or false (F)
A country in autarky does not trade
Indicate whether the statement is true or false
Monopolistic competition is similar to
a. perfect competition because the firms face downward-sloping demand curves and can earn only a normal profit in the long run b. pure monopoly because the firms face downward-sloping demand curves and can earn only a normal profit in the long run c. perfect competition because the firms face downward-sloping demand curves and similar to pure monopoly in that the firms can earn only a normal profit in the long run d. pure monopoly because the firms face downward-sloping demand curves and similar to perfect competition in that the firms can earn only a normal profit in the long run e. pure monopoly because the firms face downward-sloping demand curves and can earn an economic profit in the long run
When quantity supplied is greater than quantity demanded, there is a ____________.
Fill in the blank(s) with the appropriate word(s).