The long-run equilibrium of a monopolistic competitor differs from the long-run equilibrium of a perfect competitor in that
A) the monopolistic competitor makes economic profits.
B) the monopolistic competitor sets price equal to marginal cost.
C) the monopolistic competitor produces at the minimum point of its average total cost curve.
D) the monopolistic competitor charges a price that exceeds marginal cost.
D
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Compared to monopoly pricing, an optimal two-part tariff
A) equates marginal revenue and average revenue. B) reduces economic efficiency. C) eliminates the deadweight loss. D) increases consumer surplus.
Hughes and Cain (2011) give some credit to which of the following factors for the 1860–1910 increase in the number of people employed, shorter work days and higher real incomes?
(a) A decrease in the number of immigrants (b) A closed economy with no imports coming into or exports going out of the U.S. (c) Mechanical power and capital accumulation (d) All of the above