The demand curve facing a monopolistically competitive firm is generally
a. steeper than the demand curve that would face a perfectly competitive firm in the same industry.
b. less elastic than the demand curve that would face a monopoly in the same industry.
c. steeper and more elastic than the demand curve that would face a perfectly competitive firm in the same industry.
d. flatter than the demand curve that would face a monopoly in the same industry.
d
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Two types of asymmetric information that create problems for international investment are
A) adverse selection and moral selection. B) adverse hazard and moral hazard. C) adverse selection and moral hazard. D) adverse hazard and moral selection.
When a firm has economic profits equal to zero
A) the firm is earning a normal rate of return on investment. B) the firm is not earning a normal rate of return on investment. C) the firm should shut down. D) the firm's accounting profits are also zero.