Is a monopolistically competitive firm allocatively efficient?
A) No, because it does not produce at minimum average total cost.
B) Yes, because price equals average total cost.
C) No, because price is greater than marginal cost.
D) Yes, because it produces where marginal cost equals marginal revenue.
Ans: C) No, because price is greater than marginal cost.
You might also like to view...
Everything else equal, an increase in the supply of dollars in exchange for pesos:
A) will cause the dollars to depreciate against the pesos and will increase the quantity of dollars being traded in the foreign exchange market. B) will cause the dollars to appreciate against the pesos and will decrease the quantity of dollars being traded in the foreign exchange market. C) will cause the dollars to depreciate against the pesos and will decrease the quantity of dollars being traded in the foreign exchange market. D) will cause the dollars to appreciate against the pesos and will increase the quantity of dollars being traded in the foreign exchange market.
All of the following will tend to increase the number of years until the oil stock is depleted except
A) falling oil prices. B) additional oil exploration. C) conservation measures. D) development of oil substitutes.