In the long run in monopolistic competition,
a. economic profits are zero.
b. P = MC.
c. P = minimum ATC.
d. firms have an incentive to leave.
e. the demand curve is tangent to the MC curve.
a
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All of the following are characteristics of long-run equilibrium for firms in a monopolistically competitive market except:
A) price equals marginal cost. B) price equals average total cost. C) marginal cost equals marginal revenue. D) price exceeds the minimum of average total cost.
The CPI measures the average level of prices of all final goods and services produced in the economy
a. True b. False Indicate whether the statement is true or false
Fiscal policy is:
A. the decisions that affect the available money supply in the economy. B. government decisions about the level of the interest rate in the economy. C. government decisions about the level of taxation and public spending. D. congressional budget office decisions.
Suppose an increase in aggregate demand raises the price level. What would be the effect on the total money demand curve?
What will be an ideal response?