In the long-run, monopolistically competitive firms:
A. charge prices equal to marginal cost.
B. have excess capacity.
C. produce at the minimum of average total cost.
D. both B and C are true.
B. have excess capacity.
You might also like to view...
R2 is a statistical measure which
A) determines how important one variable is in explaining the value of another variable. B) tests the true value of a variable. C) determines how well an equation can estimate the relationship between one variable and a set of other variables. D) All of the above
When quality cannot be easily judged in advance, what provides consumers with information about the quality of a product?
a. a brand name b. a tie-in c. the quantity available for sale d. the amount of deadweight loss
An increase in productivity will:
a. Increase aggregate demand b. Increase aggregate supply c. Decrease aggregate supply and aggregate demand d. Increase aggregate supply and aggregate demand
Refer to the above figure. Between points f and g, the opportunity cost of producing 75 more bushels of wheat is
A. 4 bushels of beans. B. 100 bushels of beans. C. 1 bushel of beans. D. 25 bushels of beans.