Homework Clinic
Social Science Clinic => Economics => Microeconomics => Topic started by: kfurse on Jun 30, 2018
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A monopolistically competitive firm will:
a. maximize profits by producing where MR = MC.
b. not likely earn an economic profit in the long run.
c. shut down if price is less than average variable cost.
d. all of these.
Question 2
The ratio of the price of good X on the horizontal axis to the price of good Y on the vertical axis is the ____ of the budget line.
a. marginal rate
b. slope
c. marginal utility
d. equalization rate
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Answer to Question 1
d
Answer to Question 2
b