A monopolistically competitive firm maximizes profit at the point at which price is equal to marginal cost
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
When a U.S. company shifts some of its production to Mexico, it is engaging in
A) involuntary exchange. B) outsourcing. C) insourcing. D) self-sufficiency.
Which of the following occurs during an expansion?
a. Output rises, employment rises and unemployment falls. b. Output falls, employment rises and unemployment falls. c. Output rises, employment falls and unemployment falls. d. Output rises, employment rises and unemployment rises. e. Output rises, employment rises and tax revenues fall.
A bank has excess reserves of $5000 and deposit liabilities of $50,000 when the required reserve ratio is 20 percent. If the reserve ratio is raised to 25 percent, this bank can lend a maximum of:
A. $1,000. B. $2,500. C. $2,000. D. $1,500.
A dominant strategy
A) is one that is the best for a firm, no matter what strategies other firms use. B) is one that a firm is forced into following by government policy. C) involves colluding with rivals to maximize joint profits. D) involves deciding what to do after all rivals have chosen their own strategies.