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Question
One thing that makes monopolistic competition similar to perfect competition is that, in the
a. long run, both are guaranteed positive economic profit.
b. short run, both are guaranteed positive economic profit.
c. short run, neither can earn positive economic profit.
d. long run, both will earn zero economic profit.
e. long run, both could earn positive economic profit, but monopolistic competitors will earn more than perfect competitors.
Answer
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Related questions
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Price gouging laws will usually result in ________ the product in the distressed market.
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The economic entity most likely to engage in price gouging is
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a. He or she will substitute away from the product.
b. He or she will substitute toward the product.
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d. When a binding price ceiling exists, he or she will be willing to pay a lower price.
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What is the long-run consequence of a price ceiling law?
a. A surplus will continue to exist and will grow larger over time.
b. A surplus will continue to exist and will grow smaller over time.
c. A shortage will continue to exist and will grow larger over time.
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Q:
Suppose Solomon lives in a community with no price controls. What do you expect will happen if his town borders a community where there is a binding price ceiling on most products?
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Q:
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e. The supply of jelly will decrease and the price will increase.
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Q:
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