In the short run, a firm operating in a monopolistically competitive market
a. produces an efficient output level.
b. chooses the maximum price to maximize profits.
c. produces where marginal cost is minimized.
d. chooses a price that exceeds marginal revenue.
d
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Based on the fact that the companies Ford, IBM, PepsiCo, and McDonald's own and operate producing units in many different countries, they are categorized as:
a. joint ventures. b. sole proprietorship firms. c. partnership firms. d. multinational firms. e. co-operative firms.
The behavior of historical cost curves says nothing about the cost advantages or disadvantages of a single large firm
a. True b. False Indicate whether the statement is true or false
Suppose there are two firms in a market: firm A and firm B. Further, assume that they produce a homogenous product at a constant marginal cost of $10. In the Bertrand model solution, firm A will charge a price
A. smaller than firm B. B. greater than $10. C. greater than firm B. D. equal to $10.
If the U.S. system of unemployment insurance did not exist, one would predict that
A. workers would never become unemployed. B. workers in jobs that face seasonal cycles of unemployment would be paid higher wages. C. no worker would accept a job that is associated with seasonal unemployment. D. workers who became unemployed would remain unemployed for longer durations. E. seasonal unemployment would cease to exist.