Author Question: In the long run, a monopolistic competitor: a. earns a normal rate of return. b. sells a level of ... (Read 12 times)

ARLKQ · **on:** Jun 30, 2018

In the long run, a monopolistic competitor:
a. earns a normal rate of return.
b. sells a level of output at which marginal revenue is less than price.
c. sells a level of output at which marginal revenue equals marginal cost.
d. is characterized by all of the above.

Question 2

Suppose the yen value of a 100,000 wheat import contract rises from 12,000,000 to 13,000,000 between the contract and the payment date. This implies that the yen value of 1 dollar has declined so that, other things equal, we can expect an increase in Japanese demand for U.S. goods.
a. True
b. False
Indicate whether the statement is true or false