A monopolistic competitor in long-run equilibrium is like a perfect competitor in that
A) price equals marginal cost.
B) price is greater than marginal cost.
C) zero economic profits are made.
D) both produce at the minimum points of their average total cost curves.
C
Economics
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In the short-run if there is a surplus in the market for a product, the rationing function of price can be expected to cause
A) an increasing shift in the demand for the product. B) a decreasing shift in the supply of the product. C) an increase in the market price of the product. D) a decrease in the market price of the product.
Economics
If one's demand for peanut butter decreases as income rises, the income elasticity of demand for the product is
A) elastic. B) inelastic. C) unit elastic. D) negative.
Economics