The marginal revenue curve for a monopolistically competitive firm is ________ that of a perfectly competitive firm and ________ that of a monopolistic firm.
A. steeper than; flatter than
B. flatter than; the same as
C. the same as; steeper than
D. flatter than; steeper than
Answer: A
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What is meant by the term "rational ignorance"?
A) It refers to the fact that policymakers and their constituents have different ideas of what it means to behave rationally and each party deliberately ignores the other's view. B) It refers to the absence of a negative incentive, such as levying a fine for not voting, which results in low voter turnout. C) It refers to a situation where one policymaker deliberately approves legislation he does not support in exchange for a future favorable vote for his own cause. D) It means the lack of an economic incentive for voters to become informed about a pending vote.
If the quality of an input is easily determined at the time of purchase, then it is likely to
a. be the cause of high transaction costs of using markets b. encourage vertical integration of a firm c. encourage supplier firms to produce low-quality inputs d. be produced internally by the firm e. be purchased in the market
By law, a commercial bank is allowed to lend out of all its:
A. deposits. B. excess reserves. C. demand (checkable) deposits. D. required reserves.
The monetary expansion process from an open market operation continues until
A) required reserves are eliminated. B) the Federal Reserve takes actions to stop the process. C) the discount rate is lower than market interest rates. D) excess bank reserves are eliminated.