Which is not true for a monopolistically competitive industry?
A. Firms tend to operate with excess capacity.
B. Firms operate at the lowest point of their ATC curves in the long run.
C. Each firm faces a downward-sloping demand curve.
D. These firms earn zero economic profits in the long run.
Answer: B
You might also like to view...
In the figure above, if the government provides a subsidy to colleges of $6,000 per student per year, how many students will be accepted?
A) 8 million per year B) 12 million per year C) 10 million per year D) 16 million per year
What is income redistribution?
What will be an ideal response?
Holding all else constant, an increase in Mexican real GDP will ________ the demand for dollars in the foreign exchange market and ________ the equilibrium Mexican peso/U.S. dollar exchange rate.
A. increase; decrease B. decrease; increase C. increase; increase D. decrease; decrease
Open market operations are conducted by the Fed
A) in the New York Stock Exchange. B) in the private secondary U.S. securities market. C) through the Washington location of the Federal Reserve's Bank of Governors. D) through the Bureau of Engraving.