Consider the utility function 
. If 
, the elasticity of substitution is equal to 
.
Answer the following statement true (T) or false (F)
False
Rationale:
--- thus the elasticity of substitution in this case is 
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Why is it true that under monopolistic competition the price is above marginal revenue while under pure competition price is equal to marginal revenue?
What will be an ideal response?
About 1 out of every _______ Americans is poor.
A. 3 B. 4 C. 6 D. 8
Considering perfect competition, monopolistic competition, and monopoly, which of the market structures results in production of the welfare-maximizing level of output?
?Which of the following is a characteristic of a pure command economy?
a. all resources are privately owned
b. economic activity is coordinated by the price system
c. competitive markets guide resources to their highest-valued uses
d. centralized economic planning is used to answer the basic economic questions
e. economic choices are voluntary and are based on rational self-interest