For the monopolistically competitive firm, in both the short run and the long run
A) the demand curve is inelastic.
B) price will exceed marginal cost.
C) there will be no economic profit.
D) production will be at minimum average cost.
Answer: B
You might also like to view...
Refer to Figure 15-10. In the figure above, suppose the economy is initially at point A. The movement of the economy to point B as shown in the graph illustrates the effect of which of the following policy actions by the Federal Reserve?
A) an open market sale of Treasury bills B) an open market purchase of Treasury bills C) an increase in income taxes D) a decrease in the required reserve ratio
Industrialized countries typically ________ their floating exchange rates. Developing countries often ________ their floating exchange rates
A) manage; peg B) peg; manage C) allow markets to determine; fix D) fix; manage E) fix; allow markets to determine