You are shown a graph of a monopolist in long-run equilibrium and a graph of a monopolistically competitive firm in short-run equilibrium. How could you tell which is which?
A. In the graph of monopolistic competition, the MR curve could be closer to the demand curve.
B. In the graph of monopoly, the MR curve would be closer to the demand curve.
C. You probably could not.
D. In the graph of monopoly, the MC would slope upward.
Answer: C
Economics
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An imperfectly competitive firm has the following demand curve: Q = 100 - 2P. What is marginal revenue equal to when P = 30?
What will be an ideal response?
Economics
Other things equal, the combination of a ________ saving rate and a ________ real interest rate will result in the largest accumulation of wealth over time.
A. high; zero B. low; high C. high; low D. high; high
Economics