In monopolistically competitive markets, economic losses ____, and ____ shifts the demand curve of the remaining firms to the ____
a. signal some remaining firms to exit; exit; right
b. signal some remaining firms to exit; exit; left
c. signal new firms to enter; entry; left
d. signal new firms to enter; entry; right
a
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If a nation has a higher level of technology than another nation it can produce:
A. more outputs with the same level of physical capital. B. less with the same amount of physical capital. C. more with no use of human capital. D. the same output with the same level of inputs.
The three-step procedure for economic analysis
a. works better in macroeconomics than in microeconomics b. begins with characterizing the market c. helps governments decide how to change the market equilibrium d. focuses on goals and constraints e. is used only in microeconomics
For a firm producing in a perfectly competitive product market, the marginal revenue product of labor eventually
a. falls due to diminishing marginal returns to labor b. rises due to diminishing marginal returns to labor c. falls due to a falling product price d. falls due to a rising product price e. rises due to falling marginal productivity of labor
Leakages from the circular flow include saving and imports
a. True b. False Indicate whether the statement is true or false