Firms in monopolistic competition resemble monopolies in that both types of firms
a. earn positive economic profits in the long run.
b. charge prices higher than their marginal costs.
c. possess barriers to entry that keep potential rivals out of the market.
d. produce their output so that their average cost is minimized.
b. charge prices higher than their marginal costs.
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Tom and Jerry are the only members of society. The table above shows their marginal benefits from defense satellites, a public good. If the marginal social cost of a satellite is $36, the efficient quantity of satellites is
A) 1. B) 2. C) 3. D) 4.
Trade is promoted by
A) having a self-interested population. B) proper incentives. C) the presence of property rights. D) all of these choices.
________: the cost of capital broadly defined; the price you would have to pay to rent all the inputs used to produce the business's product
Fill in the blank(s) with correct word
Sally's Sandwiches produces sandwiches using one variable input-labor. Sally's Sandwiches is a ________ in the labor market and a ________ in the sandwich market.
A. producer; consumer B. producer; producer C. consumer; producer D. consumer; consumer