In the long run, monopolistically competitive firms have:

A. excess capacity.
B. positive profits.
C. minimal average costs.
D. homogeneous production.

Answer: A

Economics

You might also like to view...

Refer to Table 10.1. The value of the tax multiplier in this economy is

A) 0. B) -2. C) -4. D) -5.

Economics

In the game in Scenario 13.3, the equilibrium outcome:

A) is for Moto to offer a CD changer and Zport to offer low-profile tires. B) is for Moto to offer a CD changer and Zport to offer a sun roof. C) is for Moto to offer free maintenance and Zport to offer low-profile tires. D) is for Moto to offer free maintenance and Zport to offer a sunroof. E) does not exist in pure strategies.

Economics