When a monopolistically competitive firm is in long-run equilibrium, average total cost is at its minimum.
Answer the following statement true (T) or false (F)
False
This occurs only if demand is perfectly elastic, which is not the case for monopolistically competitive firms.
You might also like to view...
The opportunity cost of holding money
a. decreases when the interest rate decreases, so people desire to hold more of it. b. decreases when the interest rate decreases, so people desire to hold less of it. c. increases when the interest rate decreases, so people desire to hold more of it. d. increases when the interest rate decreases, so people desire to hold less of it.
When the value of a currency experiences exchange-rate appreciation, its value:
A. increases relative to the value of another currency. B. has experienced inflation relative to other currency. C. decreases relative to the value of another currency. D. can buy more goods and services in its own country.
When all relevant information is used to forecast inflation, the resulting forecast is called
A) a rational expectation. B) a natural expectation. C) an expected forecast. D) an expansionary expectation. E) the expected expectation.
Suppose the U.S. government encouraged consumers to trade in their old automobiles for more efficient, new models by paying up to $5,000 for the old automobiles
These consumers who did trade in their old automobiles to take advantage of the government offer would be exemplifying the economic idea that A) people are rational. B) people respond to economic incentives. C) optimal decisions are made at the margin. D) equity is more important than efficiency.