In the long run, a monopolistically competitive firm will find
a. its demand curve shifting until price equals average total cost
b. its cost curve shifting until price equals average total cost
c. its demand curve shifting until marginal revenue equals marginal cost
d. its cost curve shifting until marginal revenue equals marginal cost
e. no changes in its demand or cost curves if it is earning an economic profit
A
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In the United States, resources are most often allocated by
A) market price. B) command system. C) lottery. D) contest.
Cruise liners offer last minute deals because
a. The marginal cost is higher than the marginal revenue since fixed costs are sunk b. The marginal costs of an additional passenger are very low at that point and companies gain by lowering prices c. The average cost of an additional passenger is very low at that point and companies gain by lowering prices d. All of the above
If the price of mozzarella cheese (an ingredient in pizza) declines, there will be:
A. a decrease in the quantity of pizza supplied. B. no change in the supply of pizza. C. an increase in the supply of pizza. D. a decrease in the supply of pizza.
________ occurs when a large, powerful firm drives smaller firms out of the market by temporarily selling at an artificially low price.
A. A dominant strategy B. Predatory pricing C. A maximin strategy D. A prisoners' dilemma