Monopolistic competition in long-run equilibrium is characterized by
A. excess capacity.
B. higher cost per unit of output than under perfect competition.
C. inefficiency in use of resources.
D. All of the responses are correct.
Answer: D
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Which economy managed to eliminate economic profits and losses?
A) Socialist Cuba B) Socialist China C) Fascist Italy D) Nazi Germany E) None of the above.
The purpose of commodity buffer stocks is
(a) to moderate price fluctuations. (b) to raise commodity prices. (c) to encourage commodity substitution. (d) to guarantee national security.
GDP can rise as a result of a rise in __________________, and Real GDP can rise as a result of a rise in _______________________
A) prices or output; prices only. B) prices only; prices or output. C) prices or output; output only. D) prices or output; prices or output.
The country of Wiknam has net capital outflow of $1,000 . government purchases of $5,000 and consumption of $20,000 . Which of the following is correct?
a. If its domestic investment is $1,000 . its GDP is $26,000. b. If its domestic investment is $2,000 . its GDP is $28,000. c. If its domestic investment is $5,000 . its GDP is $29,000. d. None of the above are correct.