Which of the following statements regarding monopolistic competition is not correct?
a. In the long-run equilibrium, price equals average total cost.
b. In the long-run equilibrium, firms earn zero economic profit.
c. In the long-run equilibrium, firms charge a price above marginal cost.
d. In the long-run equilibrium, firms produce a quantity in excess of their efficient scale.
d
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Which of the following statements about the "separate but equal" provision of Plessy v. Ferguson is MOST accurate?
a. resulted in African-American schools that were comparable to white schools. b. resulted in African-American schools that were preferable to white schools in the South. c. did not seriously hamper the labor market experience of African-Americans. d. led to the creation of African-American schools that were systematically under funded.
Which of the following real-world phenomena does the classical model ignore?
a. Frictional unemployment b. Inflation c. Real output growth d. Cyclical unemployment e. Structural unemployment
Fill in the above table.
The line segment RS describes the region where
A. increases in output do not cause higher prices because of a large portion of unemployed resources.
B. prices and output increase together.
C. increases in prices do not generate any increase in output.
D. increases in prices cause decreases in output.