In the long run in a monopolistically competitive industry,
a. economic profit will be positive
b. the price will be driven to zero
c. the firm will not operate where MR = MC
d. economic profit will be zero
e. the price will exceed average total cost
D
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Refer to above Table 2-1. What is the level of Personal Saving?
A) 100 B) 90 C) 80 D) 130
According to the monetarists, deliberate government intervention:
a. will stabilize the economy if the money supply is increased during recessions and decreased during expansions. b. will effectively reduce the unemployment rate below its natural rate. c. will stabilize the economy if the money supply is reduced during recessions and increased during expansions. d. will destabilize the economy only if the government uses fiscal policy to change equilibrium income. e. will destabilize the economy and cause a business cycle of its own, regardless of whether fiscal or monetary policy is used.