Perfect competition and monopolistic competition are similar in that firms in both types of market structure will

A) act as price takers.
B) produce a level of output where price equals marginal cost.
C) earn zero profit in the long run.
D) act as price setters.


C

Economics

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In an open economy, if domestic citizens decide to save more, then the domestic real interest rate will ________ and the level of capital investment in the country will ________, holding other factors constant.

A. decrease; increase B. increase; increase C. increase; decrease D. decrease; decrease

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Which of the following is not a characteristic of the monopolistic competition market structure?

a. Many sellers, each small in size relative to the overall market. b. Few sellers. c. Differentiated product. d. Easy, low-cost entry and exit.

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An increase in price will cause a firm's total revenue to increase if demand is price elastic

a. True b. False Indicate whether the statement is true or false

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When an increase in a network's membership increases the product's value to users, there are

a. network externalities. b. economies of scale. c. natural monopolies. d. diminishing costs.

Economics