Monopolistically competitive firms have downward-sloping demand curves. In the long run, monopolistically competitive firms earn zero economic profits. These two characteristics imply that in the long run
A) monopolistically competitive markets achieve productive efficiency.
B) monopolistically competitive firms have excess capacity.
C) monopolistically competitive firms earn economic profits.
D) monopolistically competitive markets achieve allocative efficiency.
B
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Using the demand schedule in the above table, the marginal revenue for a perfectly price discriminating monopolist from the sale of the third unit of output is
A) $3. B) $4. C) $5. D) $6.
Which of the following has occurred as the millennial generation has come of age?
A) The demand for "fast casual" food has decreased in the U.S. market. B) The demand for golf equipment has increased in the U.S. market. C) The demand for traditional fast food has decreased in the U.S. market. D) all of the above