Distinguish between a perfectly competitive firm and a monopolistically competitive firm on the basis of the long-run equilibrium price
What will be an ideal response?
A perfectly competitive firm charges a price equal to marginal cost in the long run, while a monopolistically competitive firm charges a price higher than marginal cost in the long run.
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The efficient market hypothesis states that:
A. markets currently contain an efficient amount of information for them to clear. B. markets currently contain all available information and correctly value instruments. C. when buyers and sellers act in their own best interest markets will be efficient. D. in order for markets to be efficient they need to be adequately regulated.
The market for economists in Greenland has recently experienced an increase in the number of economists employed and an increase in the wage paid to economists. What could have generated such a change?
A. The demand for economists remained unchanged while the supply of economists decreased. B. The demand for economists recently decreased while the supply of economists remained unchanged. C. The demand for economists recently decreased while the supply of economists recently increased. D. The demand for economists remained unchanged while the supply of economists increased. E. The demand for economists recently increased while the supply of economists remained unchanged.