The ability to set a price greater than marginal cost guarantees an economic profit for the monopolistic competitor (assuming P > AC)
Indicate whether the statement is true or false
False. Although the firm is a price setter entry in the long run will drive price down until no economic profit exists.
Economics
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A skill-biased technological change is likely to:
A) increase the wage of skilled labor. B) increase the wage of unskilled labor. C) decrease the demand for skilled labor. D) increase the marginal productivity of unskilled labor.
Economics
If Michelle can buy a woolen jacket for 40 yuan in China, and Rebecca pays $40 for the same jacket in the U.S., it implies that the exchange rate between these two nations is 10 yuan = $1
a. True b. False Indicate whether the statement is true or false
Economics