Which of the following statements is TRUE for a monopolistically competitive firm in the long run?
A. P = MC = MR
B. P = ATC > MR
C. MC > P > ATC
D. P > MC > ATC
Answer: B
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A cartel is a group of firms
A) acting separately to limit output, lower price, and decrease economic profit. B) acting together to limit output, raise price, and increase economic profit. C) legally fixing prices. D) acting together to erect barriers to entry. E) that compete primarily with each other rather than the other firms in the market.
What steps can a bank take to deal with a significant outflow of deposits?
What will be an ideal response?
According to the demand-pull theory, what is responsible for inflation?
(A) Demand for goods and services exceeds existing supply. (B) Too much money is in circulation. (C) Producers raise prices to meet increased costs. (D) The economy is in a wage-price spiral.
In the space provided in the graph above, draw a perfectly inelastic demand curve and state its elasticity.
