Refer to the above graph of a representative firm in monopolistic competition. What does line 3 represent?
A. Marginal revenue
B. Demand
C. Average total cost
D. Marginal cost
Answer: B
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Explain what will happen to the equilibrium price and quantity of hybrid automobiles if there are technological advancements in the production of hybrid automobiles while at the same time consumer preference for hybrid automobiles increases
What will be an ideal response?
In the above figure, if the market produces the efficient amount of purses then producer surplus equals triangle
A) abc. B) bcd. C) adc. D) dce.
Aggregation is the process of
A) calculating real GDP based on nominal GDP and the price index. B) summing individual economic variables to obtain economywide totals. C) forecasting the components of GDP. D) predicting when recessions will occur.
The free rider problem is caused by the:
A. "rivalness" in consumption of a good leading to the undersupply of it. B. incentive to oversupply the good since it is nonrival in consumption. C. nonexcludability of a good leading to the undersupply of it. D. "rivalness" in consumption of a good leading to the overconsumption of that good.