Author Question: A monopolistically competitive firm operates on the ____ of their average total cost curve, where ... (Read 61 times)

imowrer · **on:** Jun 30, 2018

A monopolistically competitive firm operates on the ____ of their average total cost curve, where marginal cost is ____ average total cost.
a. declining portion; above
b. rising portion; above
c. rising portion; below
d. declining portion; below

Question 2

Assume that a British investor buys a one-year U.S. Treasury bill that pays 6 percent annual interest. Given a yield of 4 percent on a comparable British Treasury bill, the U.S. dollar must depreciate 2 percent against the British pound during the year for interest rate parity to hold.
a. True
b. False
Indicate whether the statement is true or false