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Author Question: Is a monopolistically competitive firm productively efficient? A) Yes, because it produces where ... (Read 32 times)

ARLKQ

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Is a monopolistically competitive firm productively efficient?
 
  A) Yes, because it produces where marginal cost equals marginal revenue.
  B) No, because price is greater than marginal cost.
  C) No, because it does not produce at minimum average total cost.
  D) Yes, because price equals average total cost.

Question 2

Economists use game theory to analyze oligopolies because
 
  A) it is more enjoyable for economists and students to learn by playing games.
  B) game theory is useful in understanding the actions of firms that are price takers.
  C) game theory helps us to understand why interactions among firms are crucial in determining profitable business strategies.
  D) real markets are too complicated to analyze without using games.


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stallen

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