Monopolistic competition is similar to perfect competition for all of the following reasons except
A. both have many firms in each industry.
B. both have identical demand and marginal revenue curves.
C. both make zero economic profits in the long run.
D. both maximize profits at the output level where marginal revenue equals marginal costs.
B. both have identical demand and marginal revenue curves.
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With unstable commodity demand and thus an unstable ________ curve, fluctuations in output are ________ by the fortuitous selection of ________ targeting
A) LM, minimized, money supply B) LM, eliminated, interest rate C) LM, minimized, interest rate D) IS, minimized, money supply E) IS, eliminated, interest rate
Industries, where economies of scale dictate that only a few firms produce, will be efficient if the markets in which they sell are
A. perfect. B. contestable. C. close to each other. D. protected from entry.
Which of the following statements is true about monopolistically competitive firms?
A) Unlike perfectly competitive firms, monopolistically competitive firms are able to raise their prices without losing all of their customers. B) Like perfectly competitive firms, monopolistically competitive firms are not able to raise prices without losing all of their customers because they face competition from firms selling similar products. C) Like perfectly competitive firms, monopolistically competitive firms maximize their profits by setting price equal to marginal cost. D) Unlike perfectly competitive firms, monopolistically competitive face perfectly inelastic demand curves.
________ cause foreign exchange to leave the country, and thus they are registered as a ________ in the balance of payments.
A. Exports; debit B. Exports; credit C. Imports; credit D. Imports; debit