A monopolistically competitive firm in the long run will
A. have a demand curve tangent to its AC.
B. have a demand curve below its AC.
C. have a demand curve above its AC.
D. operate where excessive profit can be achieved.
Answer: A
Economics
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What will be the principal and most immediate effect on the supply or demand for raw cotton grown in the United States if cotton-growing states experience rapid industrialization?
A) Decrease in demand B) Decrease in supply C) Increase in demand D) Increase in supply
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A surplus in a country's trade balance means that:
a. its net exports exceed transfer payments. b. the country's currency is over-valued. c. the value of its net exports is positive. d. imports into the country exceed exports. e. domestic savings exceeds domestic investment.
Economics