If the local cable TV company is a natural monopoly and required by regulators to set its price equal to marginal cost, there is a deadweight loss in the market and the firm might need a government subsidy to survive

A monopolistically competitive firm differs from a perfectly competitive firm in that a monopolistically competitive firm: a. faces a downward-sloping demand curve for its product

b. faces a horizontal demand curve at the market-clearing price. c. is able to earn profits in the long run. d. faces virtually no barriers to entry.

It is believed that the relatively high rate of labor force growth in the developing countries does not translate into a high rate of economic growth because:

a. workers in developing countries have excess capital. b. workers in developing countries are not motivated enough. c. workers in developing countries do not have the natural resources needed for production. d. workers in developing countries have very little capital. e. the high birth rate is more than offset by an enormous mortality rate.