The entry and exit of firms in a monopolistically competitive market guarantee that
A) firms can earn economic profits in the long run.
B) price equals average total cost in the long run.
C) marginal revenue equals marginal cost and average total cost is minimized.
D) firms can earn economic profits in the short run.
B
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With respect to diffusion of responsibility,
A) the larger the group, the more likely that any one individual will act. B) the larger the group, the less likely that any one individual will act. C) the size of the group has no bearing on the likelihood of any one individual to act. D) individuals are likely to take no action only if the group of individuals is small.
In the economic way of thinking, individuals make "choices" only when they
A) follow their narrow, selfish interests. B) enjoy perfect and complete information about the consequences of their actions. C) act responsibly. D) pursue one project while sacrificing another. E) have mastered the lessons of economic theory.
A system of nonattenuated (uncompromised) property rights is compatible with the achievement of economic efficiency
Indicate whether the statement is true or false
Germany Inc refers to:
a. the use of corporations to produce output b. the close relationship between government and business c. raising capital through stock markets d. interlocking directorates and cross holdings e. none of the above