The more elastic a monopolistic competitor's long-run demand curve, the:
A. greater its excess capacity.
B. higher its price relative to that of a pure competitor having the same cost curves.
C. lower its long-run profit.
D. lower its average total cost at its profit-maximizing level of output.
Answer: D
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A higher rate of saving at the national level will, in the long-run ________
A) cause a decrease in levels of capital and output B) have no effect on levels of capital and output C) lead to an increase in population growth D) cause an increase in levels of capital and output
The balance of payments constraint refers to the limits on:
A. exchange rate policy imposed by flexible exchange rates. B. currency convertibility observed in most developing countries. C. domestic macroeconomic policy, arising from a shortage of international reserves. D. macroeconomic policy resulting from IMF conditionality.