Because consumers value product variety
A) society must be more efficient with monopolistic competition than with perfect competition.
B) the inefficiency and deadweight loss created by monopolistic competition is offset.
C) in the long run, monopolistically competitive firms earn an economic profit.
D) monopolistically competitive industries are efficient.
B
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Pick the true statement from your textbook:
A) Land has a cost. B) Fruit has a cost. C) Fertilizer has a cost. D) Only actions can have costs.
If the actual inflation rate is equal to the expected rate, which of the following will happen?
a. inflationary expectations will increase and the Phillips curve will shift downward in the short run. b. inflationary expectations will not change and the Phillips curve will remain in its current position in the short run. c. inflationary expectations will decrease and the Phillips curve will shift downward in the short run. d. inflationary expectations will stay constant and the Phillips curve will shift downward in the short run. e. inflationary expectations will not change and the Phillips curve will become horizontal in the short run.