In the long run, the price charged by a monopolistic competitor will:
a. equal marginal cost.
b. equal average total cost.
c. equal marginal revenue.
d. be characterized by both b. and c.
QUESTION 2Other things equal, the higher the deviations from purchasing power, the lesser will be the arbitrage opportunities.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 3Which of the following is an example of a durable strategy undertaken by firms to prevent competition?
a. Purchasing the latest technology available in the market
b. A firm spending huge sums on advertisements.
c. Selecting a unique location for carrying out operation
d. Identifying a competent sales force
QUESTION 4In the long run, a monopolistic competitor's price will equal:
a. marginal revenue.
b. average total cost.
c. marginal cost.
d. minimum average total cost.
QUESTION 5Other things equal, an appreciation of the Algerian dinar in relation to the euro will act to increase Algerian demand for European goods and to decrease European demand for Algerian goods.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 6In order to be successful as an innovator, a firm may require:
a. constant investment in mergers and acquisitions.
b. frequent expansion of its scale of operation.
c. to invest the majority of its annual profit in market research.
d. research facilities and a culture that respects scientists and engineers.
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