A monopolistically competitive firm in the long run will
a. have a demand curve tangent to its AC.
b. have a demand curve below its AC.
c. have a demand curve above its AC.
d. operate where excessive profit can be achieved.
a
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Special-interest legislation is legislation where there are both widespread costs and benefits
a. True b. False
A firm has $200 million in total revenue and explicit costs of $190 million. Suppose its owners have invested $100 million in the company at an opportunity cost of 10 percent interest rate per year. The firm's economic profit is:
A. $400 million. B. $100 million. C. $80 million. D. zero.
For which of the following goods and services are prices most sticky?
A. Taxi fares. B. Beer. C. Coin-operated laundry machines. D. Airline tickets.
The percentage of goods and services the United States has imported from China and India over the last 15 years:
A. has risen. B. initially rose and then dropped back to the original level. C. has remained roughly the same. D. has fallen.