In the long run, international trade allows a monopolistically competitive firm an opportunity:
a. to produce more output and earn monopoly profits.
b. to produce less output and earn monopoly profits.
c. to produce more output and reduce its average costs.
d. to produce less output and increase its average costs.
Ans: c. to produce more output and reduce its average costs.
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How have government policies and programs affected the volatility of the business cycle in the United States since 1950? Explain and provide at least two specific examples of policies or programs that may have had an impact
What will be an ideal response?
The Lerner Index is a measure of market power that focuses on:
A) the ratio of the price of a firm's product to the price elasticity of demand for the product. B) the share of the market controlled by the X largest firms in the market. C) the sum of the squares of the market share of each firm in an industry. D) the difference between a firm's product price and its marginal costs of production.