In the long run the prices charged by a firm in monopolistic competition will be
a. high enough to provide profits to the firm.
b. so low that many firms will drop out of the industry.
c. equal to marginal cost.
d. equal to average cost, including the opportunity cost of capital.
d
Economics
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The MPC and MPS in the economy:
Answer the question on the basis of the following table:
A. are .4 and .6 respectively.
B. are .6 and .4 respectively.
C. are .8 and .2 respectively.
D. cannot be determined from the information given.
Economics
The accompanying figure shows Becky's daily production possibilities curve for dresses and skirts.
Point U is:
A. efficient. B. attainable. C. inefficient. D. unattainable.
Economics