In the long run, a monopolistic competitor
A) sets MR = MC.
B) produces where P = AC.
C) sets P > MC.
D) All of the above.
D
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Fiscal policy is impotent when the LM curve is
A) vertical. B) horizontal. C) downward-sloping. D) horizontal or downward-sloping.
Which of the following is false? a. If the Fed wants to expand the money supply, it could lower the discount rate
b. The discount rate is a relatively unimportant monetary policy tool, mainly because member banks do not rely heavily on the Fed for borrowed funds. c. Changes in required reserve ratios are such a potent monetary policy tool that they are frequently used. d. If the Federal Reserve wanted to induce monetary expansion, it could reduce reserve requirements, but it cannot force the banks to make loans, thereby creating new money.
The Condorcet paradox demonstrates that the order in which people vote on choices may influence the final outcome
a. True b. False Indicate whether the statement is true or false
A situation in which a private cost diverges from a social cost is
A. a transactions cost. B. an internality. C. an externality. D. internal costs.