Long-run equilibrium under monopolistic competition is similar to that under perfect competition in that
A) firms earn normal profits.
B) price equals marginal revenue.
C) price equals marginal cost.
D) firms produce at the minimum point of their average cost curves.
A
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Why do monopolistic firms practice international dumping?
a. They face the same demand conditions in their domestic and foreign markets. b. They face more elastic demand conditions in their domestic market than in their foreign markets. c. They face more elastic demand conditions in their foreign market than in their domestic market. d. They are able to take advantage of increasing costs.
Of the four models of the business cycle, which model's implication concerning the change in real wages during recessions is consistent with actual observed changes in real wages during recessions?
A) the Real Business Cycle theory B) the Friedman-Phelps-Lucas Model C) the Keynesian Model D) None of the above.