Assume the firms in a monopolistically competitive market are currently incurring economic losses
Because they are price searchers, existing firms will raise their prices until the losses are eliminated and each firm is once again earning zero economic profit. Indicate whether the statement is true or false
FALSE
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The price system works in an economy on a day-to-day basis to match the desires of consumers with the output from producers
Indicate whether the statement is true or false
An average cost pricing rule for a natural monopoly sets the price ________ the marginal cost, thereby ________ a deadweight loss
A) below; avoiding B) below; creating C) above; avoiding D) above; creating
A packaged fruit juice manufacturer contracts with several farmers to buy their orchards to support a new production facility. However, a particular orchard owner later refuses to sell his farm at the price in their contract. In such a case the court will order a liquidated damage
Indicate whether the statement is true or false
The question of whether the government should intervene at all in economic matters is entirely political
a. True b. False Indicate whether the statement is true or false