Which of the following is a difference between a monopolistically competitive market and a monopoly in the long run?
A) Firms in a monopolistically competitive market earn zero economic profits in the long run, while a monopolist usually earns positive economic profits in the long run.
B) Firms in a monopolistically competitive market earn zero economic profits in the long run, while a monopolist incurs losses in the long run.
C) Firms in a monopolistically competitive market charge a price higher than marginal cost in the long run, while a monopolist charges a price equal to marginal cost in the long run.
D) Firms in a monopolistically competitive market charge a price lower than marginal cost in the long run, while a monopolist charges a price equal to marginal cost in the long run.
A
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If the price index last year was 100 and today it is 167, what is the inflation rate over this period?
A) 33 percent B) -67 percent C) -6.7 percent D) 167 percent E) 67 percent
Show or explain the externality argument for government regulation of the environment. Describe a policy the government could adopt that would reduce pollution, but not require estimation of the optimal pollution tax
If the balance on the current account is zero, which of the following transactions will cause it to go into deficit?
a. The Moscow Capital Investment Corporation makes a loan to a US firm b. A US subsidiary exports raw materials to its French parent company c. US firms and individuals receive dividends on US investments in Latin America d. US tourists in Great Britain purchase pounds sterling e. Foreigners purchase US securities
Figure 11.4Figure 11.4 depicts demand and costs for a monopolistically competitive firm. If the firm's demand curve shifts to the left as more firms enter the market:
A. the firm's average cost will be higher at the new profit maximizing output level. B. the firm's average cost will be lower at the new profit maximizing output level. C. the firm's average cost will remain the same at the new profit maximizing output level. D. There is not sufficient information.