In monopolistic competition, in the long run firms produce
A) less output than that which minimizes their ATC.
B) more output than that which minimizes their ATC.
C) the amount of output that minimizes their ATC and their AVC.
D) the amount of output that minimizes their ATC but not their AVC.
A
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If workers and employers agree to a three-year wage contract under the expectation of 5 percent inflation, and inflation turns out to be 3 percent, then:
A. workers lose and employers gain. B. workers lose and employers lose. C. workers gain and employers gain. D. workers gain and employers lose.
The problem of political instability has been greatest in which continent?
A. South America B. Europe C. Asia D. Africa
Fluctuations in investment _____
Fill in the blank(s) with the appropriate word(s).
The Economic Recovery Tax Act of 1981 cut corporate taxes in a way that was designed to
A. encourage firms to use fewer nonrenewable resources. B. encourage firms to hire more workers. C. stimulate capital investment. D. reduce corporate profits.