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Question
Monopolistic competition and perfect competition are different in that
A) only monopolistically competitive firms advertise.
B) only monopolistically competitive firms can earn economic losses in the short-run.
C) only perfectly competitive firms maximize profits where marginal revenue equals marginal cost.
D) only perfectly competitive firms are characterized by long -run economic profits of zero.
Answer
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Related questions
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Refer to the above figure. Other things being equal, when the government imposes a price floor at P2, then we would expectA) the quantity demanded is Q 2.B) a surplus will occur.C) price to decline until an equilibrium is achieved at P0.D) consumers to bid against each other for goods and force the price even higher.
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Which of the following statements is FALSE?
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Assume that coffee and tea are substitutes. Given a downward sloping demand curve for tea, an increase in the price of tea will causeA) an increase in the demand for coffee. B) a decrease in the demand for coffee.C) a leftward shift of the demand curve for tea. D) a leftward shift in the demand for coffee.
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