In the long run, firms in monopolistic competition produce at a ...

[j.rubin]

In the long run, firms in monopolistic competition produce at a level that is ________ the efficient scale of output.
 
  A) less than
  B) equal to
  C) more than
  D) All of the above are possible depending on market conditions.

Question 2

The concept of diminishing marginal rate of substitution indicates that
 
  A) as the consumption of good X increases, individuals are willing to give up an increasing amount of good Y in order to obtain one more unit of good X.
  B) as the consumption of good X increases, individuals are willing to give up a decreasing amount of good Y in order to obtain one more unit of good X.
  C) along an indifference curve, a consumer prefers the consumption combinations moving to the northwest along the curve.
  D) None of the above answers is correct.

[nathang24]

Answer to Question 1

A

Answer to Question 2

B

[j.rubin]

Correct answers!

[nathang24]

Great! Please up vote