Average cost is higher with a monopolistically competitive firm than with a perfectly competitive firm
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following transactions is not a use of funds for Country A?
a. Increases in Country A's central bank reserve assets. b. Dividends Country A pays to the rest of the world. c. Loans to Country A from the rest of the world. d. All of these are uses of funds. e. None of the above is a use of funds.
If real GDP exceeds potential GDP, then the unemployment rate ________ the natural unemployment rate
A) is greater than B) equals C) is less than D) The premise of the question is incorrect because the relationship between real GDP and potential GDP has nothing to do with the relationship between the unemployment rate and the natural unemployment rate. E) The premise of the question is incorrect because real GDP can never exceed potential GDP.
In the long-run, a firm in monopolistic competition produces at an output level where
A) P > ATC and MR = MC. B) P > ATC and MR > MC. C) P = ATC and MR = MC. D) P = ATC and MR > MC. E) P = ATC and MC = ATC.
In the above figure, which of the following statements is FALSE?
A) The total fixed cost curve is curve C. B) Total variable cost and total cost both increase as output increases. C) Marginal cost is equal to the slope of curve A. D) The vertical gap between curves A and B is equal to average fixed cost.