Long-run equilibrium under monopolistic competition is similar to long-run equilibrium under perfect competition in that:
a. price equals the minimum average total cost.
b. firms face perfectly elastic demand curves.
c. price equals average cost
d. marginal revenue equals average cost.
c
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A liquidity trap is
a. the vertical portion of the LM schedule. b. the horizontal portion of the LM schedule. c. a situation where a given change in the money stock induces a large reduction in the interest rate. d. Both a and c e. Both b and c
U.S. has a _____ banking system - state-chartered banks operate beside federally-chartered banks.
Fill in the blank(s) with the appropriate word(s).
Sally lost her job when her company went out of business because of a recession. This is an example of:
A. frictional unemployment. B. structural unemployment. C. cyclical unemployment. D. technological unemployment.
An economy's production possibilities are most likely to expand if
A. Gross investment is greater than depreciation. B. Net investment is zero. C. Net investment is negative. D. Depreciation is greater than gross investment.