In the long run, the equilibrium number of monopolistically competitive firms with trade:
a. is less than the total number of firms worldwide in autarky.
b. is the same as the total number of firms worldwide in autarky.
c. is greater than the total number of firms worldwide in autarky.
d. may be less than, the same as, or greater than the total number of firms worldwide in autarky.
Ans: a. is less than the total number of firms worldwide in autarky.
You might also like to view...
Refer to the information provided in Figure 13.10 below to answer the question(s) that follow. Figure 13.10 Refer to Figure 13.10. If Armstrong Cable were free to sell to any number of subscribers it desires and set any price, it would sell to ________ subscribers at a price of ________.
A. 1,000; $16 B. 2,500; $12 C. 800; $15 D. 2,200; $13
An employer is prejudiced, prefers to hire white rather than Hispanic workers, and is willing to pay higher wages to obtain white workers. This illustrates:
A. reverse discrimination. B. the crowding model. C. the taste-for-discrimination model. D. statistical discrimination.