Monopolistically competitive firms could reduce the average total cost of producing by increasing output; therefore, these firms have
excess capacity.
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What real-world complications keep purchasing power parity from being a complete explanation of exchange rates?
What will be an ideal response?
The more bidders there are at a second-price auction,
a. the higher the expected selling price b. the higher each bidder bids c. the more each bidder will shade his bid d. the less each bidder will shade his bid
At equilibrium
A. quantity supplied is equal to quantity demanded. B. quantity demanded is greater than quantity supplied. C. quantity supplied is greater than quantity demanded.
Game theory is important for understanding which of the following market types?
a. perfectly competitive and oligopolistic markets b. perfectly competitive markets but not oligopolistic markets c. oligoplistic but not perfectly competitive markets d. neither oligopolistic nor perfectly competitive markets.