What is true of a monopolistically competitive market in long-run equilibrium? a. Price is greater than marginal

Question:

What is true of a monopolistically competitive market in long-run equilibrium?

a. Price is greater than marginal cost.

b. Price is equal to marginal revenue.

c. Firms make positive economic profits.

d. Firms produce at the minimum of average total cost.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Principles Of Microeconomics

ISBN: 9780357133484

9th Edition

Authors: N Gregory Mankiw

See More Books

Question Posted: Jan 27, 2024 11:00 PM

See More Questions

1. Summarize the following theories: just in time (JIT), Toyota Production System (TPS), and Lean. How are these concepts related? Describe the advantages and disadvantages for using each of these...
MCQ questions: 1. An increase in oil prices, such as the oil shocks in the 70s, lead to _______ thereby causing ________ a movement along the AS curve; cost-push inflation a leftward shift in the AS...
MCQ questions choose the correct answer 1. As inflation increases and becomes more volatile, resulting in greater uncertainty, which of the following is most likely to occur? The price system becomes...
Why does the following code fragment not have the same effect as the code fragment in the previous question? x.next t.next = t; = x.next;
You are in a windowless car in as exceptionally smooth train moving at constant velocity. It there any physical experiment you can do in the train car to determine whether you are moving? Explain.
The earnings per share (in dollars) and the dividends per share (in dollars) for 6 companies in a recent year. (a) Display the data in a scatter plot, (b) Calculate the sample correlation coefficient...
How long have you been working in your current position?
Barberry, Inc., manufactures a product called Fruta. The company uses a standard cost system and has established the following standards for one unit of Fruta: During June, the company recorded this...
In service partnerships, if properly booked for tax purposes pursuant to Treasury Regulations under IRC 731, partners who receive so-called "draw" allowances are not deemed to receive distributions...
If advertising makes consumers more loyal to particular brands, it could _________ the elasticity of demand and _________ the markup of price over marginal cost. a. increase; increase b. increase;...
New firms will enter a monopolistically competitive market if a. marginal revenue is greater than marginal cost. b. marginal revenue is greater than average total cost. c. price is greater than...
Colt Division had the following results for the year just ended: Sales..................................$750,000 Contribution margin ..................300,000 Controllable...
Holyrood Co. just paid a dividend of $6.45 per share. The company will increase its dividend by 30% next year and will then reduce its dividend growth rate by 5 percentage points per year until it...
Your firm has a cost of capital of 18.7%. You are considering two projects. Project A will cost $121,000 and provide benefits of $27,000 per year for 12 years. Project B will cost $146,000 initially....
You wish to put your savings of 5000 into a bank account. There are two different offers from bank A and bank B. (a) [ Bank A has the following offer for savings: They first offer continuously...
The spot rate between Euro and dollar is $0.5 / and the observed 1-year forward rate is $0.5556 / . The interest rates in the U.S. and EU are 10% p.a. and 5% p.a. respectively, both compounded...
10. Craig owns an index annuity that has a 90 percent participation rate, a 14 percent cap, and a zero percent floor. The contract is backed by a 2 percent minimum guaranteed rate. If the index...
Enter the following column headings across the top of a sheet of paper: Enter the transaction/adjustment letter in the first column and show the effect, if any, of each transaction/adjustment on the...
1) The government decided to reduce taxes on fast-food to increase revenue. The government assumes that fast-food products have a) An inelastic demand b) An elastic demand c) A demand curve that is...
Using the midpoint formula, calculate elasticity for each of the following changes in demand. Demand for: a. Cashews b. Portable hard drive (4 terabytes) c. 6-gauge copper wire P $7.50 per pound $80...
Fill in the missing amounts in the following table: Demand for the Apple Watch Demand for roses on Valentine's Day Demand for electronic cigarettes % Change in Price +50% -10% % Change in Quantity...
The demand for hamburgers is shown in the following figures, with hamburgers priced in dollars in Figure a and pennies in Figure b. Calculate the slope of each demand curve and use your answers to...
What type of communication is happening when technology is used to send messages to a large, mixed audience? Discuss
Entries for Direct Labor and Factory Overhead Townsend Industries Inc. manufactures recreational vehicles. Townsend uses a job order cost system. The time tickets from November jobs are summarized as...
(b) Assuming that sales revenue increases by 10% (due to a 10% increase in the number of units sold), prepare a single-column CVP income statement for each company. Sales Revenue Variable Costs...

What is true of a monopolistically competitive market in long-run equilibrium? a. Price is greater than marginal

Question:

Step by Step Answer:

Principles Of Microeconomics

Students also viewed these Business questions