When a profit-maximizing firm in a monopolistically competitive market is producing the long-run equilibrium quantity,
a. its average revenue will equal its marginal cost.
b. its marginal revenue will exceed its marginal cost.
c. it will be earning positive economic profits.
d. its demand curve will be tangent to its average total cost curve.
d
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A rise in the price of a substitute in production for a good leads to
A) an increase in the supply of that good. B) a decrease in the supply of that good. C) no change in the supply of that good; instead there is a change in the quantity supplied. D) a decrease in the quantity of that good supplied. E) no change in either the supply or the quantity supplied of the good.
Consolidation or cooperation frequently occurs in the public sector. Give some reasons why local governments consolidating or cooperating through special districts might be problematic
What will be an ideal response?