A profit-maximizing, monopolistically competitive firm always operates:
a. at the minimum of average total cost
b. at the point where demand is unit elastic.
c. with excess capacity.
d. at an economically efficient scale.
c
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Which of the following is least likely to be considered a capital input?
A) a sewing machine B) a tractor C) a telephone D) a ten dollar bill
Suppose an oligopolistic market has only two firms. Which of the following is true if the firms refuse to cooperate?
a. Allocative efficiency will be achieved. b. Competition for market share will increase. c. Decision making will be mutually independent. d. Prices will be at the same level as in a monopoly market.
In the short run, which of the following rates of growth in the money supply is likely to lead to the lowest level of unemployment in the economy?
a. 3 percent per year b. 5 percent per year c. 7 percent per year d. 9 percent per year
Which statement best explains why growth in China has been so rapid recently?
A. China began with very little capital, so its marginal product of capital was very low. B. China began with very high capital, so its marginal product of capital was very low. C. China began with very high capital, so its marginal product of capital was very high. D. China began with very little capital, so its marginal product of capital was very high.