Excess capacity in monopolistically competitive industries results because in equilibrium
A) each firm's output level is too great to minimize average cost.
B) each firm's output level is too small to minimize average cost.
C) firms make positive economic profit.
D) price equals marginal cost.
B
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Most economists believe that in the long run, changes in the money supply
a. affect nominal but not real variables. This view that money is ultimately neutral is consistent with classical theory. b. affect nominal but not real variables. This view that money is ultimately neutral is inconsistent with classical theory. c. affect real but not nominal variables. This view that money is ultimately neutral is consistent with classical theory. d. affect real but not nominal variables. This view that money is ultimately neutral is inconsistent with classical theory.
The Human Genome Project is a useful example of
A. private sector and public sector collaboration. B. government-conducted research. C. private sector research. D. government spending.
In long-run equilibrium, a monopolistically competitive firm achieves optimal productive efficiency but not optimal allocative efficiency.
Answer the following statement true (T) or false (F)
Savings and loans primarily provide:
A. unsecured credit card loans. B. home mortgages. C. large commercial loans. D. student loans.