Unlike a perfectly competitive firm, a monopolistically competitive firm
A. faces a perfectly inelastic demand curve.
B. can earn positive economic profit in the short run and in the long run.
C. cannot earn positive economic profit even in the short run.
D. has a negatively sloped demand curve.
Answer: D
Economics
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The natural rate of unemployment includes
A) frictional and cyclical unemployment. B) frictional unemployment and structural unemployment. C) only cyclical unemployment. D) only unemployment due to layoffs and corporate downsizing.
Economics
Suppose that the percentage change in demand is 10%, the price elasticity of demand is 1, and the percentage change in the equilibrium price is 3.33%. What is the price elasticity of supply?
A. 0 B. 1 C. 2 D. 3
Economics