New firms enter a monopolistically competitive market structure in the long run if the price charged by the existing firms in the short run ________
A) exceeds the average total cost of production
B) equals the average fixed cost of production
C) equals the average variable cost of production
D) equals the price charged in a perfectly competitive market
A
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A) A recent news report stated that the unemployment rate in the country Lithasia had increased from 10.2% to 18.2% from 2003 to 2013 and that the government had adopted strict fiscal measures to expand employment
Would this report be considered microeconomic or macroeconomic analysis? b) Students in a class are discussing how a firm should determine its profit-maximizing output. Would this discussion be considered microeconomic or macroeconomic analysis?
The table above shows the marginal benefit that arises from providing police protection in an economy of two people, Paul and Art. Police protection is a public good
a) Construct a table of the economy's marginal social benefit from providing police protection. b) What is the economy's marginal social benefit from having 3 police cars on duty?