Answer the following questions true (T) or false (F)
1. If a perfectly competitive firm maximizes short-run profits, its marginal revenue will be positive and less than its price.
2. A profit-maximizing monopolistically competitive firm produces and sells an allocatively efficient quantity of output.
3. Unlike a perfectly competitive firm, a monopolistic competitor does not have a short-run shut-down point.
1. TRUE
2. FALSE
3. FALSE
You might also like to view...
Five people want to have a lighted garden built at the entrance to their neighborhood. The difficulties they experience in getting one another to commit to paying for the garden are best described as
A) property rights. B) transactions costs. C) negative externalities. D) rivalry.
The quantity of money that people choose to hold depends on which of the following?
I. The price level II. Financial innovation III. The exchange rate A) I B) I and II C) I and III D) I, II, and III