Author Question: Unlike purely competitive firms, firms in monopolistic competition will operate with excess capacity ... (Read 39 times)

Mr3Hunna · **on:** Jun 30, 2018

Unlike purely competitive firms, firms in monopolistic competition will operate with excess capacity even in long-run equilibrium.
a. True
b. False
Indicate whether the statement is true or false

Question 2

Carlos Silva, a Colombian singer, goes on tour to the United States for one month, following high American demand for his live shows. Assuming that all the show's expenses are paid by the U.S. promoters, other things equal, the U.S. tour will bring about:
a. a decreased supply of Colombian pesos in the foreign exchange market.
b. an increased supply of American dollars in the foreign exchange market.
c. an increased supply of Colombian pesos in the foreign exchange market.
d. a decreased demand for Colombian pesos in the foreign exchange market.
e. an increased demand for American dollars in the foreign exchange market.