The efficiency of monopolistic competition
A) is as clear-cut as the efficiency of perfect competition.
B) depends on whether the gain from extra product variety offsets the selling costs and the extra cost that arises from excess capacity.
C) comes from its excess capacity.
D) is eliminated in the long run.
E) is equal to that of monopoly.
B
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In the United States, labor earnings are about what percent of total income?
a. 75 percent b. 70 percent c. 67 percent d. 50 percent
Dollar depreciation raises United States Real GDP when the __________ shift of the AD curve exceeds the _________________ shift of the SRAS curve
A) rightward; rightward B) rightward; leftward C) leftward; rightward D) leftward; leftward
Refer to the following graph.
Suppose this graph represents the market for cheese. In order to keep the price of cheese at Pf, government must:
A. prevent the excess supply from reaching the market. B. devise a mechanism to ration cheese to consumers. C. cause the demand for cheese to decrease. D. cause the supply of cheese to increase.
All of the following are true regarding perfectly competitive price determination EXCEPT
A. the individual firm takes the market price as given. B. the individual firm is known as a market price maker. C. the individual firm's marginal revenue curve is horizontal at the market price. D. the market price is determined by the interactions among all buyers (households) and firms.