In long-run monopolistic competition, firms earn zero economic profit
Indicate whether the statement is true or false
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Refer to the table above. If the market for notebooks is perfectly competitive, the equilibrium price is:
A) $2. B) $3. C) $4. D) $5.
If the world real interest rate were 6% and the domestic real interest rate in Denmark was 9%, borrowers in Denmark would borrow at the rate of ________ and lenders in Denmark would lend at the rate of ________
A) 6%; 6% B) 6%; 9% C) 9%; 6% D) 9%; 9%
During the trough of the business cycle,
a. employment and income are at a low ebb. b. little investment in plant and equipment occurs. c. consumers postpone purchases of durable goods. d. All of these occur.
The CPI equals 1.00 in year one and 1.15 in year two. If the nominal wage is $15 in year one and a contract calls for the wage to be indexed to the CPI, what will be the nominal wage in year two?
A. $17.25 B. $15.00 C. $22.50 D. $16.15