A monopolistically competitive firm can minimize its losses by producing where ________ as long as ________.
A. P = ATC; P > MR
B. MR = MC; P > AVC
C. P = MR; P > AFC
D. P = MC; P > ATC
Answer: B
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Over the past year, an economy's labor supply increased from 100 to 102, its capital stock increased from 1000 to 1030, and its output increased from 500 to 525. All measurements are in real terms
Calculate the contributions to economic growth of growth in capital, labor, and productivity if aK = 0.2 and aN = 0.8.
Price ceilings are primarily targeted to help __________, while price floors generally benefit __________
a. producers; no one b. increase tax revenue for governments; producers c. increase tax revenue for governments; consumers d. producers; consumers e. consumers; producers
If the citizens of a country were to work harder and take less leisure time, it would
a. shift the production possibilities curve outward. b. cause an economy to operate inside its production possibilities curve. c. shift the production possibilities curve inward. d. cause an economy to move from one point on the production possibilities curve to another point on the curve.
As of April 2015, the Fed no longer holds any mortgage-backed securities or federal agency debt securities as assets.
Answer the following statement true (T) or false (F)