In the long run, a monopolistically competitive firm will produce too little output to minimize average cost. Therefore, it will have

a. positive economic profit
b. negative economic profit
c. excess profit
d. X-inefficiency
e. excess capacity


E

Economics

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Moody's gives junk bonds a rating below

A) Aaa. B) Aa. C) A. D) Baa.

Economics

In oligopoly, any action by one firm to change price, output, or quality causes

A) a reaction by other firms. B) no reaction from the other firms. C) a profit gain for the other firms. D) loss of market share by the acting firm.

Economics

If we are considering the relationship between two variables and release one of the other- things-equal assumptions, we would expect:

A. the relationship to change from direct to inverse. B. the line representing that relationship on a graph to shift. C. the data points to have a tighter fit to the line representing the relationship. D. the relationship to change from inverse to direct.

Economics

Refer to the given table. An increase in the money supply of $20 billion will cause the equilibrium interest rate to:



Answer the question on the basis of the following table:
A.  fall by 4 percentage points.
B.  fall by 2 percentage points.
C.  rise by 4 percentage points.
D.  rise by 2 percentage points.

Economics