Monopolistic competition is similar to
a. perfect competition, in that firms face downward-sloping demand curves and earn zero long-run economic profit
b. pure monopoly, in that firms face downward-sloping demand curves and can earn economic profits both in the short run and in the long run
c. perfect competition, in that firms face perfectly elastic demand curves and earn zero long-run economic profit
d. pure monopoly, in that firms can earn economic profits both in the short run and in the long run, and similar to perfect competition, in that firms face perfectly elastic demand curves
e. pure monopoly, in that firms face downward-sloping demand curves, and similar to perfect competition, in that long-run economic profit is zero
E
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Which of the following is not one of the three sources of technological change?
A) better machinery and equipment B) better means of organizing and managing production C) additional amounts of existing capital D) increases in human capital
The absolute value of the slope of the budget constraint is equal to
A) the quantity of the good on the vertical axis divided by the quantity of the good on the horizontal axis. B) the price of good on the horizontal axis divided by the price of the good on the vertical axis. C) the marginal rate of substitution between the two goods in question. D) the price of good on the vertical axis divided by the price of the good on the horizontal axis.