Which of the following statements regarding the long run for a profit-maximizing monopolistically competitive firm is FALSE?
A) The firm is making zero economic profit.
B) The firm produces the quantity of output for which marginal revenue equals marginal cost.
C) The average total cost equals the price.
D) The firm produces the quantity at which the marginal revenue curve intersects the demand curve.
D
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Which of the following is the best example of a firm that competes in a monopolistically competitive market?
A) the U.S. Postal Service B) Microsoft C) a movie theater D) an automobile manufacturer
The money supply has decreased from $2.75 trillion to $2.25 trillion. Which of the following could have caused this increase?
A. The Fed purchased government securities from the public. B. The Fed decreased the discount rate. C. Consumers who were holding money within the banking system withdrew this money. D. Commercial banks decide to hold fewer excess reserves.