In a monopolistically competitive equilibrium, firms outside the industry could make at most zero profit by entering the industry.
Answer the following statement true (T) or false (F)
True
Rationale: If this were not the case, the industry would not be in equilibrium since firms outside would have an incentive to enter.
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Which of the following is CORRECT about a time-series graph?
I. The x-axis measures time. II. A time-series graph can reveal if there is a trend in the variable. A) only I B) only II C) both I and II D) neither I nor II
As the housing bubble began to collapse, the wave of initial foreclosures led to:
A. banks flooding the market with homes for sale, further depressing their price. B. more foreclosures due to the herd instinct. C. banks no longer offering refinancing as an option, and home sales slowed. D. more household saving in other forms.
Refer to the information provided in Table 6.2 below to answer the question(s) that follow. Table 6.2Number ofCandy Bars per DayTotal UtilityMarginal Utility140?275?3100?4115?5?5Number ofHot Dogs per DayTotal UtilityMarginal Utility130?254?372?484?5?6Refer to Table 6.2. Diminishing marginal utility sets in after the ________ candy bar per day.
A. first B. second C. third D. fourth
Giving presents at Christmas does NOT generate a deadweight loss if
A) all gifts are money. B) everybody gets exactly want she wants. C) nobody can be made better off by returning the gift and purchasing a different one. D) All of the above.