For the monopolistic competitor, which of the following is INCORRECT?
A) Because the firm is not a perfect competitor, its demand curve slopes downward.
B) The marginal revenue curve is downward sloping and lies below the demand curve.
C) The profit-maximizing rate of output arises at the point at which the marginal cost curve intersects the marginal revenue curve.
D) If the firm in a monopolistically competitive industry were making economic losses, new firms will enter the industry.
D
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Suppose the Federal Reserve wants to increase the money supply. Which combination of actions would lead to the appropriate effect?
a. Increase the discount rate, decrease the reserve ratio, sell bonds. b. Increase the discount rate, decrease the reserve ratio, buy bonds. c. Decrease the discount rate, decrease the reserve ratio, buy bonds. d. Decrease the discount rate, increase the reserve ratio, buy bonds. e. Decrease the discount rate, decrease the reserve ratio, sell bonds.
When real GDP is in equilibrium with no government and no international trade
A. unplanned inventories are increasing. B. real planned investment spending equals real planned saving. C. real planned investment equals real planned consumption spending. D. unplanned inventories are decreasing.