Which of the following short-run outcomes for monopolistic competition is NOT possible?
A. P > ATC.
B. P = MR = MC.
C. P > MC > ATC.
D. P = ATC.
Answer: B
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In the labor negotiation game:
a. The payoffs from bargaining hard are only higher if your opponent accommodates b. The payoffs from bargaining hard are only higher if your opponent bargains hard c. The payoffs are always higher if you bargain hard d. The payoffs are always higher if your opponent bargains hard
Suppose a consumer purchases pizza and soft drinks. If pizza is measured on the vertical axis and soft drinks are measured on the horizontal axis, then the slope of the budget line is equal to:
A. the price of pizza divided by the price of soft drinks. B. the price of soft drinks divided by the price of pizza. C. the price of pizza divided by the price of soft drinks times negative one. D. the price of soft drinks divided by the price of pizza times negative one.
Suppose that at the equilibrium price and quantity, the marginal revenue is ?$15 and the price elasticity of demand for a linear demand function is ?0.75. Then we know that the equilibrium price is:
A. ?$45. B. $45. C. ?$5. D. $5.
In practice, the three measurements of inflation, the CPI, PPI, and GDP deflator:
A. all measure inflation, but focus on different parts of the economy. B. are all positively correlated. C. all closely track each other. D. All of these statements are true.