Is there any similarity between a perfectly competitive firm and a monopolistically competitive firm in the long run? Explain your answer
What will be an ideal response?
Both a perfectly competitive firm and a monopolistically competitive firm earn zero economic profits in the long run.
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Fluctuations in the relative demand for stock market mutual funds versus money-market mutual funds causes instability in the overall demand for
A) M1 but not M2. B) M2 but not M1. C) M2 and M1. D) neither M1 nor M2.
An inferior good exhibits
A) a negative income elasticity. B) a downward sloping Engel curve. C) a decline in the quantity demanded as income rises. D) All of the above.
If it costs a firm $10 to produce a good and the same good sells for $7 abroad, then this firm is engaging in
A) profit maximization. B) price discrimination. C) price differentiation. D) dumping.
The basic approach in marginal analysis is to compare a policy's total benefits with its total costs
a. True b. False Indicate whether the statement is true or false