Which of the following describes the relationship among market price (P), average revenue (AR), and marginal revenue (MR) for a firm in monopolistic competition
a. P = AR = MR
b. P > AR = MR
c. P = AR > MR
d. P > AR > MR
e. P = AR < MR
C
You might also like to view...
Define the tragedy of the commons. Give three examples of common pool resources. Briefly explain why common pool resources are subject to overuse
What will be an ideal response?
The long-run average cost curve indicates
a. the lowest average costs of production at each level of output. b. the lowest average costs of production for each plant size. c. the lowest point along each of the firm’s short-run average total cost curves. d. the lowest point along each of the firm’s short-run marginal cost curves.
The phenomenon of wages in many industries changing very little or not at all for a year or more after a change in output is referred by economists as
a. wage lag effect. b. wage stickiness. c. compensation inflexibility. d. inertia. e. reservation wage effect.
______: 2 firms doing 2 activities. If combined produce more.
Fill in the blank(s) with the appropriate word(s).