A monopolistic competitor in long-run equilibrium is like a perfect competitor in that
A) price equals marginal cost.
B) price is greater than marginal cost.
C) zero economic profits are made.
D) both produce at the minimum points of their average total cost curves.
Answer: C
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During the American Revolution, the Pennsylvania legislature enacted price controls on essential commodities. The result of this legislation was
A. a large increase in the availability of those items, ending shortages. B. a severe shortage of those essential commodities. C. an increase in the price of those items, thus alleviating shortages. D. new efforts to increase production of those commodities. E. a minor inconvenience as persons adjusted to the new law.
An increase in supply of a product results when
A) the companies that produce the product have higher materials costs. B) the government reduces subsidies on the product. C) taxes on the product are increased. D) technological innovations are introduced in the manufacturing process.
Other things equal, an appreciation of the Algerian dinar in relation to the euro will act to increase Algerian demand for European goods and to decrease European demand for Algerian goods
a. True b. False Indicate whether the statement is true or false
A benevolent social planner would prefer that the output of good x be decreased from its current level if, at the current level of output of good x,
a. social value = private value = private cost < social cost. b. private cost < social cost = private value = social value. c. social cost = private cost = private value < social value. d. social cost = private cost = private value = social value.