Refer to the figure above. The optimal price charged by the monopolistic competitor is ________
A) P1
B) P2
C) P3
D) P4
B
You might also like to view...
Consider the market for smart phones. Which of the following shifts the demand curve rightward?
A) a decrease in the price of smart phones B) an increase in the price of smart phones C) an increase in the price of land-line phone service, a substitute for smart phones D) an increase in the supply of smart phones E) a decrease in the number of smart phone buyers
If a firm is using optimal input proportions, it is minimizing its costs.
Answer the following statement true (T) or false (F)
Budgets deficits can be a concern because they might
A) ultimately lead to higher inflation. B) lead to lower interest rates. C) lead to a slower rate of money growth. D) lead to higher bond prices.
Competitive firms consider private costs, but disregard external costs, when making their economic decisions
a. True b. False Indicate whether the statement is true or false