In monopolistic competition there is an underallocation of resources at the profit-maximizing level of output, which means that:
A. minimum ATC is less than MC.
B. price is greater than minimum ATC.
C. minimum ATC is less than MR.
D. price is greater than MC.
Answer: D
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As real disposable income increases, we expect the average propensity to consume (APC)
A) to always be below MPC. B) to increase. C) to remain unchanged. D) to decrease.
As the price of cameras increases
A. the demand for cameras will increase. B. the demand for film will increase. C. the demand for film will decrease. D. the supply of cameras will increase.
A hollow corporation
A. makes goods abroad and ships them to the United States. B. makes goods in the United States and ships them abroad. C. imports foreign goods and puts its own name on them. D. makes goods in the United States and has them sold abroad under another company's name.
Diagram a model of supply and demand for a competitive labor market with a minimum wage in effect. Identify a group that gains and a group that loses when a minimum wage is imposed.
What will be an ideal response?