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In monopolistic competition:
a) Firms face a perfectly elastic demand curve
b) All products are homogeneous
c) Firms make normal profits in the long run
d) There are barriers to entry to prevent entry
Let a macroeconomic model be of the following form: C = a + bY D a = 10 T = T 0 b = 4/5 G = G 0
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What are the four managerial factors that lead to diseconomies of scale
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Suppose that a household in a two-period model has income of $30,000 in period 1 and $25,000 in period 2, and the interest rate is 75 percent. Assume that the price of the good is
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