Which of the following examples reflects monopolistic competition?
a. After modernizing equipment, Mitchell, Inc operates at the lowest average cost of production.
b. After making long-run adjustments, Slattery, Inc operates at 90 percent of capacity.
c. Long-run adjustments allows Gable, Inc to operate at 100 percent capacity.
d. Production refinements allow Jones, Inc. to operate at a level where average total cost is minimized.
b. After making long-run adjustments, Slattery, Inc operates at 90 percent of capacity.
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If resale is easy, then
A) price discrimination won't work, because then only low-priced goods are sold. B) consumers' demand curves will shift to the low-priced good. C) firms will stop providing the good. D) price discrimination results in lower consumer surplus.
Skyline Chili wants to finance the purchase of new equipment for its restaurants. The firm has limited internal funds, so Skyline likely will
a. demand funds from the financial system by buying bonds. b. demand funds from the financial system by selling bonds. c. supply funds to the financial system by buying bonds. d. supply funds to the financial system by selling bonds.