What did Harvard economist Edward Chamberlain say about the observation that a monopolistically competitive firm's average cost of production exceeds its minimum average total cost?
A. Chamberlain argued that this belief is incorrect. In his view, monopolistically competitive firms do not produce at a cost above their minimum average total costs.
B. In Chamberlain's view, this is evidence that monopolistic competition uses society's resources inefficiently and in a fashion that merits government intervention.
C. Chamberlain argued that these higher costs represent the wastefulness of this market structure.
D. According to Chamberlain, this cost difference represents the value consumers place on variety and having more choice.
Answer: D
You might also like to view...
If Caterpillar Inc raises the price of earth-moving equipment that it manufactures in Illinois, then the CPI will ________ and the GDP deflator will ________
A) increase; increase B) increase; increase by less than the CPI C) increase; not change D) not change; not change E) not change; increase
The income that people receive is called
a. national income b. personal income c. disposable personal income d. transfer payments e. net national product
Corporations must always pay dividends to their shareholders
a. True b. False Indicate whether the statement is true or false
The "future value" of a sum of money refers to:
A. the estimated value of that money invested in a stock portfolio at some future date. B. the purchasing power of a given amount of money adjusted for price changes. C. today's value of a sum of money to be received in the future. D. the amount to which some current sum of money will grow over time.