In the above figure of a monopolistically competitive firm, in the long run after all industry adjustments have taken place, assuming that this firm's costs have not changed the firm will
A) produce more output at a higher price.
B) produce less output at a lower price.
C) produce the same quantity at the same price.
D) Any of the above are possible.
B
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Generally, there is a strong positive correlation between per capita GNP and other measures of human development
a. True b. False Indicate whether the statement is true or false
Your friend Shahla argues that inflation is bad for the economy because it lowers everyone's purchasing power. How would an economist respond to Shahla's statement?
a. Her statement is true. b. Her statement is false because inflation redistributes income but does not change the average level of income in the economy. c. Her statement is true when everyone's nominal income changes by the same amount. d. Her statement is true when wages and benefits are not indexed to the CPI. e. Her statement is true only in a closed economy.