Which of the following is not a characteristic of monopolistically competitive firms in the long run:
A. there is no deadweight loss.
B. firms charge a price above marginal cost.
C. each firm maximizes profits.
D. firms earns zero profits
Answer: A
Economics
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Which of the following is likely to happen due to a contractionary monetary policy?
A) An increase in the inflation rate B) An increase in labor supply C) An increase in the federal funds rate D) An increase in labor demand
Economics
When E increases by 5%, we know that
A) a real appreciation will occur if P decreases by 5%. B) a real depreciation will occur if P also increases by 5%. C) a nominal appreciation will occur. D) a nominal depreciation will occur.
Economics