A monopolistically competitive firm will price its output on the demand curve above where_________.
a. MR=MC
b. MR=AC
c. AC=MC
d. AVC=MC
Answer: A
Economics
- If the Federal Reserve creates new money to finance the government's deficit, then it is monetizing the deficit.(True/False)
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- Any time the government sets an artificially low price for a product, it increases the possibility of a shortage of that product.(True/False)
- In cost-push inflation, prices go up because of higher cost of production.(True/False)
- When the Federal Reserve lowers the reserve requirement, the amount of money in circulation should tend to decrease.(True/False)
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- Unlike other major energy sources, the supply of fossil fuels such as petroleum, natural gas, and coal are unlimited (True/False)
- The demand curve for a firm in a competitive environment is_______.