The "New Economy", a period marked by major technological change, low inflation, low unemployment, and rapidly growing productivity characterized

A monopolistically competitive firm will end up selling its output for a price such that its

A) price is greater than marginal cost. B) price is equal to marginal cost. C) price is equal to marginal revenue. D) price is equal to average total cost.

If firms have different costs and market demand only supports the quantity the incumbent produces, then the incumbent's threat to use limit pricing

A) is credible. B) is not credible. C) would be illegal. D) is unable to be determined with the information given.