In long-run equilibrium, monopolistic competition entails:
A. an efficient allocation of resources.
B. an overallocation of resources due to inadequate capacity.
C. an underallocation of resources due to excess capacity.
D. production at the minimum attainable average total cost.
A. an efficient allocation of resources.
B. an overallocation of resources due to inadequate capacity.
C. an underallocation of resources due to excess capacity.
D. production at the minimum attainable average total cost.
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In periods of inflation, wages generally increase to compensate for higher prices
Indicate whether the statement is true or false
An argument in favor of foreign direct investment is that it tends to
(a) reduce inequality. (b) promote rural development. (c) increase access to modern technology. (d) decrease local ownership. (e) none of the above.
The assignment of inputs to specific industries by central planners is made difficult by
A. the interdependency among industries. B. lack of data for decision making. C. the danger of a chain reaction among industries if an error is made at any point. D. All of the responses are correct.
Monoploy
What will be an ideal response?