Compared to a perfectly competitive firm, in a long run the monopolistically competitive firm will have
A) a lower price.
B) a lower average cost.
C) a horizontal demand function.
D) a lower rate of output.
D
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In the circular flow model, money flows from the business sector to the household sector through the:
a. product market. b. capital market. c. goods market. d. services market. e. resource market.
Price elasticity of demand is the
A. percentage change in quantity demanded divided by the percentage change in price. B. change in price divided by the change in quantity. C. percent change in price divided by the change in quantity. D. change in quantity divided by the change in price.
When a firm establishes a long-term contract with another firm, whereby the first firm grants the second independent business the rights to use the former's name, reputation and business format, it is referred to as a:
A. lease contract. B. joint venture. C. franchise agreement. D. standard supply contract.
An effluent fee is an example of
A. a government policy to promote the production of a product with an external benefit. B. a government policy to correct for an external cost. C. a government policy to promote the production of a product with an external cost. D. a government policy to correct for an external benefit.