Which of the following is the long-run outcome for monopolistic competition?
A) MR > MC.
B) P > ATC > MC.
C) P = ATC.
D) P > ATC.
Answer: C
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Is it possible for nominal wages to decrease while real wages increase?
What will be an ideal response?
Extractive industries such as farming, mining, or lumbering typically: a. are considered to be decreasing cost industries
b. are considered to be constant cost industries. c. use only small portions of the total supply of specialized resources. d. are considered to be increasing cost industries.
During which period were government budget deficits quite large, but there was no corresponding surge of private saving?
a. in the mid-1970s b. in the mid-1980s c. in the mid-1990s d. in the mid-2000s
Government spending has no effect on resource allocation since the government simply engineers a transfer of private goods and services from one group in the economy to some other group
Indicate whether the statement is true or false