A firm in monopolistic competition is similar to a firm in perfect competition because they both
A) can earn only zero economic profit in the long run.
B) can earn only zero economic profit in the short run.
C) maximize their profits by producing where P = MR = MC.
D) Both answers A and C are correct.
E) Both answers B and C are correct.
A
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The ability to quickly convert an asset into cash is
A) disintermediation. B) the standard of deferred payment. C) financial intermediation. D) liquidity.
If the government intervenes in a labor dispute and requires settlement through binding arbitration, what takes place?
a. A neutral third party makes a decision that both parties must accept. b. A neutral third party makes a decision that both parties may reject. c. One party sues the other in court. d. The two parties negotiate an agreement without assistance and both must accept it. e. The two parties negotiate an agreement with assistance from their attorneys and both must accept it.