Refer to the graph shown. The short-run equilibrium output level for the monopolistically competitive firm represented is:

A. 900.
B. 1,000.
C. 500.
D. 300.

Answer: D

Economics

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From uncovered interest parity, we know that when the domestic currency is expected to depreciate, the domestic interest rate should be:

a. greater than the foreign interest rate. b. greater than the foreign exchange rate. c. less than the foreign interest rate. d. less than the foreign exchange rate.

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If companies who took into account an externality want to supply more at any given price compared to the original supply, they must have addressed a:

A. positive externality. B. negative externality. C. network externality. D. social externality.

Economics