The long-run equilibrium of a monopolistically competitive firm is characterized by
A. production at the minimum point of the firm's average variable cost curve.
B. production at the minimum point of the firm's average total cost curve.
C. a tangency of the average total cost curve with the firm's demand curve.
D. price equal to marginal cost.
Answer: C
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In the economic way of thinking, private property rights provide people with
A) rules of the game. B) dependable information. C) incentives. D) none of the above. E) all of the above.
Refer to Figure 9-2. The tariff revenue collected by the government equals the area
A) D + E + F. B) B + D + E + F. C) E. D) C + D + E + F.
When the price of a product decreases, the marginal revenue product curve in a perfectly competitive market
A) does not change. B) becomes flatter. C) shifts to the right. D) shifts to the left.
The opportunity wage is often a better measure of executive pay than
A. MPP because executives do not have an MPP. B. Derived demand because the elasticity of supply for an individual is greater than 1.0. C. MRP because of the difficulty in quantifying executive output. D. Opportunity costs of executive leisure.