In a monopolistically competitive market, if price is greater than average cost:
A. firms will enter.
B. firms will exit.
C. there will be no change in the number of firms.
D. the market is in long-run equilibrium.
Answer: A
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Which of the following is more liquid?
A. A privately held company's stock B. A publicly held company's stock C. A house D. A rare painting
Between 1968 and 2008 the percentage share of income that went to the top quintile
A. fell substantially. B. fell somewhat. C. stayed about the same. D. rose substantially.
The free-rider problem arises when people:
A. who pay for a good cannot consume it. B. who do not pay for a good cannot consume it. C. obtain a good for less than the market equilibrium price. D. who do not pay for a good cannot be excluded from consuming it.
An increase in demand accompanied by an increase in supply will increase the equilibrium quantity, but the effect on equilibrium price will be indeterminate.
Answer the following statement true (T) or false (F)