Firms in monopolistic competition have rivals that
A) match their price increases.
B) match their price decreases.
C) agree on a common price.
D) set their prices according to the demand curves they face.
D
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If, at the current price, there is a surplus of a good, then
a. the quantity supplied is greater than the quantity demanded. b. the market must be in equilibrium c. the price is below the equilibrium price. d. quantity demanded equals quantity supplied.
Which of the following is true if there is a shortage of loanable funds?
What will be an ideal response?
One way tariffs differ from quotas is that
A. tariffs produce no revenues but set limits on the imported items. B. tariffs are applied only on raw materials. C. quotas produce revenues for the exporting country's government. D. tariffs produce revenues for the importing country's government.
Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower