Monopolistically competitive firms prevent the efficient use of resources because in long-run equilibrium
A. price equals marginal cost.
B. price is greater than marginal cost.
C. price is less than marginal cost.
D. marginal cost is less than average total cost.
B. price is greater than marginal cost.
You might also like to view...
One of the conclusions of A. C. Pigou was that
a. a system of mandatory controls is the only effective means to control pollution. b. a system of charges can be an effective means to control pollution. c. pollution will wither away if a socialist system is in place. d. pollution cannot be adequately addressed in a price system.
If the nominal interest rate is high and rising, a possible cause is
A) increased lending activity.
B) a rising inflation rate.
C) a falling real interest rates.
D) increased government borrowing.
Which of the following is NOT a likely result of intraindustry trade based on internal economies of scale?
A) Job creation at domestic firms entering international trade B) Lower prices for the domestic consumers of the product now being traded C) Increased sales and lower per unit costs for the firm doing the exporting D) Higher prices for the exported product
The income velocity of money is the absolute number of times, on average, that
A. each one-unit increase in the price level occurs. B. each unit of real Gross Domestic Product (GDP) is produced by business firms. C. each monetary unit is spent on final goods and services. D. people purchase goods and services during a year.