Which statement concerning monopolistic competition is false?
A. Firms may experience losses in the short run.
B. In the long run P = ATC > MC.
C. Firms differentiate their products, but the products are relatively substitutable.
D. Firms may experience positive economic profits in the long run since barriers to entry are significant.
Answer: D
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Indicate whether the statement is true or false
The tax rebate of 2008 is an example of
a. expansionary monetary policy. b. contraction fiscal policy. c. contraction monetary policy. d. pump priming.
Markets can efficiently handle irreversible decisions without involvement of government
a. True b. False Indicate whether the statement is true or false
Consider the labor market for short-order cooks. An increase in immigration will cause
a. both equilibrium wages and equilibrium employment to increase. b. both equilibrium wages and equilibrium employment to decrease. c. equilibrium wages to increase and equilibrium employment to decrease. d. equilibrium wages to decrease and equilibrium employment to increase.