Long-run equilibrium under monopolistic competition is similar to that under perfect competition in that
A) firms earn normal profits.
B) price equals marginal revenue.
C) price equals marginal cost.
D) firms produce at the minimum point of their average cost curves.
A
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Increases in productivity due to changes in technological capacity could be best represented by:
a. Outward shift in the demand curve b. Outward shift in the supply curvec Outward shift in both the demand and supply curves d. Inward shift in the supply curve
Backloaded compensation makes the wage profile increase at a decreasing rate
Indicate whether the statement is true or false
For the typical student, taking an introductory course in economics should
a. turn the student into an economist. b. teach the student solutions to most social problems. c. teach the student how to answer complex social questions. d. help the student learn to rationally analyze social problems. e. All of the above are correct.
Briefly explain how unemployment insurance can stabilize the economy. Give an example.
What will be an ideal response?