Monopolistic competition is an inefficient market structure because
a. marginal revenue equals marginal cost.
b. it has a deadweight loss, just as monopoly does.
c. long-run profits are zero due to free entry.
d. All of the above are correct.
b
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Suppose the average productivity of workers in Country A is equal to that of workers in Country B. If Country A has higher total efficiency units of labor than Country B, it implies that ________
A) Country B has a larger supply of workers B) Country A has a larger supply of workers C) Country B has a larger stock of capital D) Country A has a larger stock of capital
If consumers but not producers expect that the price of soda will rise in November, the
A) supply of soda in October will increase. B) demand for soda in October will decrease. C) demand for soda in October will increase. D) supply of soda in October will decrease.