You decide to buy your friend lunch after she helped you study for your exam. This is an example of the economic concept of:
A. marginal utility.
B. altruism.
C. reciprocity.
D. a Veblen good.
C. reciprocity.
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The most a monopolist can sell at any given price is:
A. the amount he alone can supply the market with. B. the amount demanders are willing to buy at that price. C. constrained by the availability of inputs. D. less than if it were a perfectly competitive market.
Which of the following most accurately describes the long-run period? a. The long run is a period of time in which a firm is unable to vary some of its factors of production
b. In the long run, the firm is able to expand output by utilizing additional workers and raw materials, but not physical capital. c. The long run is of sufficient length to allow a firm to alter its plant capacity and all other factors of production. d. The long run is of sufficient length to allow a firm to transform economic losses into economic profits.
Shoeleather costs arise when higher inflation rates induce people to
a. spend more time looking for bargains. b. spend less time looking for bargains. c. hold more money. d. hold less money.
What accounts for the fact that profit is zero in the long-run equilibrium in monopolistic competition?
a. Firms have excess capacity. b. Firms spend too much on product development. c. Firms are too small relative to the market. d. There are no barriers to the entry of new firms.