In the long run, a monopolistically competitive firm will produce too little output to minimize average cost. Therefore, it will have
a. positive economic profit
b. negative economic profit
c. excess profit
d. X-inefficiency
e. excess capacity
E
Economics
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Refer to Figure 13-9. Which of the graphs in the figure depicts a monopolistically competitive firm that is minimizing its losses?
A) Panel A B) Panel B C) Panel C D) Panel A and Panel C
Economics
Ignoring the government and foreign sectors, if planned investment spending is $500 billion, planned saving is $800 billion, and real Gross Domestic Product (GDP) is $13 trillion, then unplanned inventories will
A) decrease $300 billion. B) increase $300 billion. C) increase $800 billion. D) not change.
Economics