A firm in monopolistic competition has some degree of price-setting power because
A) in the long run it earns a normal profit.
B) it can never earn less than normal profit.
C) the price it charges is never more than its marginal cost.
D) if it raises its price, the quantity it can sell will not decrease to zero.
D
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Which of the following bonds would you prefer to be buying?
A) a $10,000 face-value security with a 10 percent coupon selling for $9,000 B) a $10,000 face-value security with a 7 percent coupon selling for $10,000 C) a $10,000 face-value security with a 9 percent coupon selling for $10,000 D) a $10,000 face-value security with a 10 percent coupon selling for $10,000
To protect depositors against bank failures, the federal government created which of the following in 1933?
a. Federal Reserve System b. Resolution Trust Company c. Federal Savings and Loan Insurance Corporation d. Federal Deposit Insurance Corporation e. Excess Reserve Insurance Corporation
A tax credit for purchases of capital goods causes the interest rate to increase and the exchange rate to appreciate
a. True b. False Indicate whether the statement is true or false
According to purchasing-power parity, if prices in the United States increase by a smaller percentage than prices in the United Kingdom, then the
a. real exchange rate rises. b. nominal exchange rate rises. c. real exchange rate falls. d. nominal exchange rate falls.