What are the key factors that determine the profitability of a firm in a monopolistically competitive market?
What will be an ideal response?
A monopolistically competitive firm's profitability depends on its ability to differentiate its products (especially to make them seem more desirable than competitors' products) and to produce its product at a lower average cost than competing firms.
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Starting from long-run equilibrium, an increase in autonomous consumption results in ________ output in the short run and ________ output in the long run.
A. higher; higher B. higher; potential C. lower; higher D. lower; potential
According to Edward Denison's estimates, the largest proportion of economic growth during the 1929-82 period was
a. growth in the labor input. b. growth in output per unit of input. c. growth in the capital input. d. economies of scale. e. education.
What interest rate does the Fed charge when it makes loans to banks?
a. the prime rate b. the U.S. Treasury Bond rate c. the discount rate d. the federal funds rate e. the U.S. Treasury Bill rate
The high cost of labor in the European labor market is partially caused by:
a. Substantial labor market regulation b. high productivity c. restrictions on hiring d. a hire and fire policy e. none of the above