The fact that a monopolistically competitive firm does not produce at the minimum ATC can be viewed as the cost of generating
a. product differentiation and variety.
b. economies of scale.
c. homogeneous products.
d. All of the above
Answer: a. product differentiation and variety.
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The Phillips curve indicates that when the labor market is ________, production costs will ________ and aggregate supply increases
A) easy; rise B) easy; fall C) tight; fall D) tight; rise
Exhibit 7-13 Cost curves
In Exhibit 7-13, TFC is shown by the graph labeled:
A. I. B. II. C. III. D. IV.
Suppose you own your own pizzeria. All of the following are implicit costs except
A. the income you could have made using your delivery truck to do something else. B. the gasoline used when you deliver pizzas. C. the wages you could earn making pizza for your competitors. D. the interest forgone on the money you invested in your restaurant.
Open market operations involve the Fed
A. Borrowing money from a bank. B. Buying or selling shares of stock. C. Lending money to individuals. D. Buying or selling government bonds.