A monopolistic competitive firm is inefficient because the firm:
a. is not maximizing its profit.
b. is producing at an output where average total cost is not minimum.
c. earns positive economic profit in the long run.
d. none of these.
b
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An increase in disposable income will shift the aggregate demand curve to the right
Indicate whether the statement is true or false
Command economies strictly rely on sophisticated input-output analysis to allocate resources.
Answer the following statement true (T) or false (F)
If a bank customer deposits $100 in cash, and the bank lends $90 of that deposit to another customer by crediting $90 to her account:
A. the money supply has increased by $190. B. the money supply has increased by $90. C. the money supply has decreased by $10. D. the money supply has not changed.
If the marginal physical product (MPP) is falling, then the
A. Marginal cost of each unit of output is rising. B. Marginal cost of each unit of output is falling. C. Total cost of each unit of output is falling. D. Total cost of each unit of output is rising.