A typical monopolistically competitive firm
A. sells a homogeneous product in the market.
B. earns zero economic profits in the long run.
C. sets the price of its product equal to its marginal cost of production.
D. faces a perfectly elastic demand curve.
Answer: B
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A permanent shift in the foreign exchange market supply and demand curves such that the fixed exchange rate is no longer an equilibrium rate is referred to as:
a. permanent devaluation. b. speculative disequilibrium. c. permanent revaluation. d. speculative equilibrium. e. fundamental disequilibrium.
Oligopoly is a market structure characterized by ________ number of firms who behave ________
a. large, interdependently. b. large, independently. c. a few, interdependently. d. a few, independently.
A rise in net exports shifts the
A) AD curve leftward. B) AD curve rightward. C) SRAS curve leftward. D) SRAS curve rightward.
Matt fishes for tuna at a cost of $4 per ton. John fishes at a cost of $6 per ton. Each has a 1000 ITQ. The current market price is $8 per ton. What amount could Matt pay John to induce him to sell his ITQ?
A. $1000 B. $2000 C. $3000 D. It would not be profitable for Matt to buy John's ITQ