The marginal revenue curve of a monopolistically competitive firm will always lie:
a. below the firm's demand curve.
b. parallel to the firm's demand curve.
c. parallel to the firm's quantity axis.
d. above the firm's demand curve.
a
Economics
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If the Fed decides to engage in an open market operation to increase the money supply, what will it do?
a. Sell Treasury bonds, bills, or notes on the bond market. b. Buy Treasury bonds, bills, or notes on the bond market. c. Increase the required reserve ratio. d. Increase the fed funds rate.
Economics
An important similarity between a monopolistically competitive firm and a purely competitive firm is that:
A. both face perfectly elastic demand schedules. B. economic profit tends toward zero for both. C. both realize productive efficiency. D. both realize allocative efficiency.
Economics