Which of the following is true under monopolistic competition in the long run?
A. P = MC.
B. P = MR.
C. Profits are always zero.
D. All of the choices are true in monopolistic competition.
Answer: C
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The figure above shows the market for coffee. The ________ price that producers must be offered to get them to produce 30 million pounds of coffee per month is ________
A) maximum; $2.50 B) minimum; $2.50 C) maximum; $4.00 D) minimum; $4.00
Which of the following is an advantage of open market operations over other Federal Reserve policy tools?
a. Use of the other tools must be approved by the President. b. Use of the other tools must be approved by Congress. c. Open market operations are more precise. d. Open market operations do not change interest rates. e. The U.S. Treasury and the Fed work together to undertake open market operations.
The number of people willing to buy tickets to the Super Bowl is invariably greater than the number of tickets (and seats) available. This is evidence that the price of the tickets is
What will be an ideal response?
Which of the following is correct?
A. The actual reserves of a commercial bank equal its excess reserves plus its required reserves. B. A single commercial bank can legally lend an amount greater than its excess reserves. C. When borrowers take out bank loans, the money supply is decreased. D. When borrowers repay bank loans, the money supply is increased.