Which two curves are tangent to each other in a monopolistically competitive market with zero economic profit?
a. demand and average variable cost
b. demand and average total cost
c. marginal revenue and average variable cost
d. marginal revenue and average total cost
b
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Holding other factors constant, an increase in the tax rate on revenue generated by capital will:
A. decrease national saving. B. increase national saving. C. increase investment. D. decrease investment.
The above figure shows the market for anti-freeze. The government imposes the sales tax shown in the figure on sellers. Automobile owners would pay a larger part of this tax than what is shown in the figure if the
A) demand were more elastic. B) demand were more inelastic. C) supply were more inelastic. D) None of the above because the buyers always pay the entire amount of the tax.
The primary assets of money market mutual funds are
A) stocks. B) bonds. C) money market instruments. D) deposits.
Actual investment equals intended investment only when the economy is in macroequilibrium
Indicate whether the statement is true or false