In the long run in monopolistic competition, the demand curve facing the typical firm
a. is perfectly elastic
b. slopes upward
c. is tangent to the firm's average total cost curve
d. lies above the firm's average total cost curve
e. is the same as the portion of the firm's marginal cost curve above average variable cost
C
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Explain how it might be possible to discuss costs of production of a good or service without using monetary values
What will be an ideal response?
. Economists use the percentage change in quantity rather than the absolute change in quantity because:
A. percentage changes are easier to calculate than absolute changes. B. the measured elasticity is the same regardless of the unit of measurement for quantity. C. absolute changes are confusing to convert. D. absolute changes often result in negative numbers.
Jody has purchased a non-refundable $75 ticket to attend a Miley Cyrus concert on Friday night. Subsequently, she is asked to go to out dinner at no expense to her. If she uses cost-benefit analysis to choose between going to the concert and going out to dinner, the opportunity cost of going out to dinner should include:
A. the cost of the ticket plus the entertainment value of the concert. B. only the cost of concert ticket. C. only the entertainment value of the concert. D. neither the cost of the ticket nor the entertainment value of the concert.
What are the two largest expenditure categories in the EU budget?
What will be an ideal response?