Monopolistic competition is similar to
a. perfect competition because the firms face downward-sloping demand curves and can earn only a normal profit in the long run
b. pure monopoly because the firms face downward-sloping demand curves and can earn only a normal profit in the long run
c. perfect competition because the firms face downward-sloping demand curves and similar to pure monopoly in that the firms can earn only a normal profit in the long run
d. pure monopoly because the firms face downward-sloping demand curves and similar to perfect competition in that the firms can earn only a normal profit in the long run
e. pure monopoly because the firms face downward-sloping demand curves and can earn an economic profit in the long run
D
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A monopoly's goal using price discrimination is to increase
A) total revenue. B) marginal revenue. C) total profit. D) the per unit profit.
Figure 9-3
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In Figure 9-3, at $3,000 billion GDP,
A. inventories will be falling, signaling businesses to decrease production. B. inventories will be falling, signaling businesses to increase production. C. planned saving increases planned investment. D. inventories will be accumulating, signaling businesses to increase production.