A firm in monopolistic competition is similar to a firm in perfect competition because they both
A) can earn only zero economic profit in the long run.
B) can earn only zero economic profit in the short run.
C) maximize their profits by producing where P = MR = MC.
D) Both answers A and C are correct.
E) Both answers B and C are correct.
A
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Those who administer poverty programs have strong incentives to _____
a. ignore the poor b. perpetuate poverty c. eliminate poverty d. that poverty is minimized
There are two coal-burning electrical utilities—one in tiny, rural Wanunu, Montana, and another in metropolitan Detroit, Michigan—and each produces the same amount of pollution per unit of output
If a permit tax is going to be used to force these firms to internalize pollution costs, the tax levied should be A) the same in each city. B) higher in Wanunu than in Detroit. C) higher in Detroit than in Wanunu. D) less than zero in each city.
If a consumer experiences a decrease in income, the new budget constraint will have the same slope as the old budget constraint
a. True b. False Indicate whether the statement is true or false
When those that do not contribute to the costs of a public good are denied use, this is a case of
A. exclusion. B. being nonrival. C. price discrimination. D. infeasibility.