Author Question: In the long run in monopolistic competition, a firm will not produce the output level that minimizes ... (Read 76 times)

Lobcity · **on:** Jun 30, 2018

In the long run in monopolistic competition, a firm will not produce the output level that minimizes average cost because
a. that output level is less than the profit-maximizing one
b. at that output level, MC is greater than MR
c. at that output level, P is greater than MR
d. demand is horizontal
e. that would leave the firm with excess capacity

Question 2

Rational ignorance suggests that voters may not spend much time examining candidates before an election because
a. politics is boring
b. each voter has virtually no chance of deciding the election
c. public choices are not important to society
d. candidates are chosen by the electoral college
e. candidates are usually so different that it is easy to determine which is better