The primary difference between a monopolistically competitive firm and a monopoly is:
A. the ability for competition to enter the market in the long run.
B. the ability for competition to enter the market in the short run.
C. only the monopolistically competitive firm is a price taker.
D. only the monopolist can set his price equal to demand.
A. the ability for competition to enter the market in the long run.
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Refer to the table below. If Just Juice is producing the profit-maximizing total quantity, what is the profit -maximizing price for Just Juice to charge per bottle?
Just Juice produces whole fruit juice that it sells in single bottles. Just Juice is a multi-plant firm with market power. The above table summarizes the total marginal cost of production at various output levels in Just Juice's two plants with the corresponding marginal revenue (dollars per bottle) and market demand (price per bottle).
A) $4.50
B) $4.00
C) $2.00
D) $3.50
Faster growth rates by a major trading partner, combined with an increase in stock market wealth, would have what effect on aggregate demand? a. AD would increase
b. AD would decrease. c. AD would stay the same. d. AD could either increase or decrease, depending on which change was of a greater magnitude.
When the yen gets "stronger" relative to the dollar,
A. the U.S. trade deficit with Japan will rise B. the U.S. trade deficit with Japan will fall C. the U.S. trade deficit with Japan will be unchanged D. None of the above necessarily happens
A firm with explicit costs of $3,000,000, no implicit costs, and total revenue of $3,000,000 would have
A. zero economic profit. B. zero accounting profit. C. accounting profits equal to economic profits, in this case both zero. D. All of the choices are true of this firm.