A monopolistically competitive firm will end up selling its output for a price such that its
A) price is greater than marginal cost.
B) price is equal to marginal cost.
C) price is equal to marginal revenue.
D) price is equal to average total cost.
A
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What effect does the increase of the price of gasoline have on the cost curves of package delivery firms such as Federal Express or United Parcel Service? How might the effects differ for a software firm such as Symantec that uses the Internet?
Please provide the best answer for the statement.
Refer to the diagram showing the domestic demand and supply curves for a specific standardized product in a particular nation. If the world price for this product is $.50, this nation will experience a domestic:
A. shortage of 160 units, which it will meet with 160 units of imports.
B. shortage of 160 units, which will increase the domestic price to $1.60.
C. surplus of 160 units, which it will export.
D. surplus of 160 units, which will reduce the world price to $1.00.