Which of the following is true of the output level produced by a firm in long-run equilibrium in a monopolistically competitive industry?
A) It produces at minimum average cost.
B) It does not produce at minimum average cost, and average cost is increasing.
C) It does not produce at minimum average cost, and average cost is decreasing.
D) Either B or C could be true.
C
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How would an increase in the U.S. federal budget deficit affect the exchange rate in the market for dollars?
A) The exchange rate will increase. B) The exchange rate will not be affected by a change in the federal budget deficit. C) The exchange rate will decrease. D) The impact of the increase in the federal budget deficit on the exchange rate cannot be predicted.
For firms that sell one product in a perfectly competitive market, the market price:
A. can be influenced by one firm's output decision. B. is equal to the average total cost of a firm. C. is taken as a constant by individual firms. D. is higher than the marginal revenue of a firm
Some critics have argued that moving children to private schools might reduce the _________ of education.
A. pure public goods aspect B. positive externalities C. size of library holdings D. size of teachers unions influence
A monopolist is maximizing profit at an output rate of 100 units per week. At this output rate, the price that its customers are willing and able to pay is $8 per unit, average total cost is $5 per unit, and marginal cost is $6 per unit. It may be
concluded that at this monthly output rate, marginal revenue is A) $5 per unit, and the monopolist earns zero economic profits. B) $6 per unit, and the monopolist earns economic profits of $200 per week. C) $6 per unit, and the monopolist earns economic losses of $100 per week. D) $6 per unit, and the monopolist earns economic profits of $300 per week.