Which of the following is true about a monopolistically competitive firm in the long run?
A. It produces at the level where costs are minimized.
B. It tends to realize only a normal profit.
C. It is as efficient as a purely competitive firm.
D. It will practice marginal cost pricing.
Answer: B
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Suppose one firm accounts for 55 percent of the global market share for a product, while 147 other firms account for the remaining 45 percent of the market
With such a large number of buyers and sellers, is this market likely to be competitive? Explain your answer.
Which of the following does not hold true for a perfectly competitive firm in long-run equilibrium?
A) Marginal cost will be minimized. B) It will minimize average total cost. C) Its economic profit will be zero. D) It will charge a price equal to marginal cost.
Velocity is commonly calculated by which of the following formulas?
a. (Value of money stock)/(Value of nominal GDP) b. (Value of transactions)/(money stock) c. (Value of financial transactions)/(GDP) d. (Value of output)/(Value of input)
Nearly half of federal government research and development spending takes place in the
a. National Science Foundation.
b. National Aeronautics and Space Administration (NASA).
c. Department of Defense.
d. Federal Office of Technology Policy.