In the long run the monopolistic competitor
A. charges the same price but produces a greater output than the perfect competitor.
B. charges a higher price but produces a smaller output than the perfect competitor.
C. charges a higher price and produces a higher output than the perfect competitor.
D. charges a lower price and produces a lower output than the perfect competitor.
B. charges a higher price but produces a smaller output than the perfect competitor.
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If the deficit is 0.1 times GDP, the existing debt—GDP ratio is 0.5, and the growth rate of nominal GDP is 0.04, then the change in the debt—GDP ratio is
A) +0.08 B) +0.075. C) 0. D) -0.075.
The empirical evidence on the velocity of money, specifically M2, shows it to be relatively stable over the long run. Does this imply that monetary policymakers really should focus on the growth rate of money for economic stability?
What will be an ideal response?
Psychological research shows that choices that involve ________ are likely to turn out worse than those involving ________.
A. low payoffs; high payoffs B. simple information; complicated information C. high payoffs; low payoffs D. complicated information; simple information
The highest-valued alternative that is given up or sacrificed when choosing to produce or consume one good over another is referred to as _____________.
a. an economic choice b. an opportunity cost c. an accounting cost d. a fixed cost e. a variable cost