Firms in monopolistic competition resemble monopolies in that both types of firms
a. earn positive economic profits in the long run.
b. charge prices higher than their marginal costs.
c. possess barriers to entry that keep potential rivals out of the market.
d. produce their output so that their average cost is minimized.
b. charge prices higher than their marginal costs.
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Which of the following is explained by the price elasticity of demand for a product?
a. The effect of changes in price on the supply of the product b. The effect of changes in quantity on the supply of the product c. The effect of changes in quantity on the price of the product d. The effect of changes in price on the quantity demanded of the product e. The effect of changes in price on the quantity supplied of the product
Economists use the phrase, "dollar bills left on the sidewalk" for describing systematically missed opportunities
Indicate whether the statement is true or false