Which of the following is false?
a. Long run equilibrium in monopolistic competition results in zero economic profits
b. Monopolistic competitor's demand curves are likely to be more elastic than those of monopolists.
c. Monopolistic competition results in a greater variety of products than perfect competition.
d. Monopolistic competition's zero economic profit long run equilibrium is efficient, like the zero profit equilibrium in perfect competition.
d
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A substitute is a good
A) that can be used in place of another good. B) that is not used in place of another good. C) of lower quality than another good. D) of higher quality than another good.
Which of the following will cause, other things being equal, a movement along the supply curve for HDTVs?
A) an improvement in the technology of producing HDTVs B) an increase in resource costs for producing HDTVs C) a reduction in the price of HDTVs D) an expectation that the price of HDTVs will be lower in the future