The monopolistically competitive firm in short-run equilibrium
a. faces a downward-sloping demand curve.
b. has a marginal revenue curve which lies below its demand curve.
c. maximizes profit where MR = MC.
d. All of the above are correct.
d
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You go to the movieplex where movies ordinarily cost $9 . You are intending to see a movie for which you have a $3 off coupon good for only that movie at that time. However, when you get there you see a friend who asks if you would rather see a new release. Both movies start and end at the same time. If you decide to see the new release with your friend, what is your opportunity cost?
a. the amount you value the first movie + $3 b. the amount you value the first movie + $9 c. $3 d. $9
What percent of taxable income is reported on tax returns according to an Internal Revenue Service survey?
a. 85% b. 75% c. 65% d. 55%
The Big Mac Index suggests that exchange rates should leave Big Mac hamburgers costing the same in the United States as abroad.
a. true b. false
The practice of the ECB and national central banks of preventing massive bank failures after the financial crisis of 2008 had what effect on the affected economies?
A) Prevention of bank failures greatly reduced the pain of the crisis for taxpayers. B) Prevention of bank failures ended up not saving most banks anyway. C) Banks resisted the takeover by the ECB and refused to make additional credit available. D) Governments financed the bailouts by issuing more domestic debt, which caused extreme fiscal problems.