Some economists argue that monopolistically competitive markets are inefficient because:
A. the firms earn economic profits in the long run.
B. the firms' marginal costs and marginal revenues are not always equal.
C. firms do not produce the output rate that would minimize their average total cost.
D. barriers to entry are high.
Answer: C
Economics
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As interest rates fall, the
A) promised payments of bonds fall. B) face values of bonds fall. C) price of bonds rises. D) price of bonds falls.
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Which of the following is the Fed's best strategy for dealing with demand shocks?
a. Maintain a money supply target b. Decrease the money supply c. Maintain a passive monetary policy d. Neutralize the impact with an increase in the money supply e. Increase the interest rate
Economics