In the long run, the output of a monopolistically competitive firm
a. exceeds that of an otherwise similar perfectly competitive firm
b. is less than that of an otherwise similar perfectly competitive firm
c. is at the point at which LRAC is minimized
d. equals that of an otherwise similar perfectly competitive firm
e. is less than that of an otherwise similar monopolist
Question 2
When the government increases taxes to provide traditional public goods, such as national security, there tends to be
a. widespread benefits and costs
b. widespread costs and concentrated benefits
c. concentrated benefits and costs
d. widespread benefits and concentrated costs
e. widespread costs and either widespread or concentrated benefits
Solution (Polynomial Long Division)
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