In the long run, a firm in monopolistic competition has its price equal to ________ and also has its price ________.
A) marginal cost; exceeding its average total cost.
B) marginal cost; equal to its average total cost
C) average total cost; exceeds its marginal cost
D) average total cost; less than its marginal cost
Question 2
If the combination of goods consumed at point C is preferred to combination D then
A) point C is on a higher indifference curve.
B) point C is on the same indifference cure but at a point where the vertical axis value is greater than point D's vertical axis value.
C) point C is on a lower indifference curve.
D) point C is on the same indifference curve but at a point where the horizontal axis value is greater than point D's horizontal axis value.
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Flexible exchange rates are supposed to prevent long-term trade deficits.