Demand and marginal revenue curves are down sloping for monopolistic ally competitive firms because:
A. Each firm has to take the market price as given
B. Product differentiation allows each firm some degree of monopoly power
C. There are a few large firms in the industry and they each act as a monopolist
D. Mutual interdependence among all firms in the industry leads to collusion
B. Product differentiation allows each firm some degree of monopoly power
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Quasi differences in Yt are defined as
A) Yt - Yt-1. B) Yt - ?1Yt-1. C) ?Yt - ?1Yt-1. D) ?1(Yt - Yt-1).
An initial injection of new investment triggers the income multiplier into action and people's incomes and consumption spending grow. Firms expect the growth to continue and purchase more investment goods. The coupling of the effects of the accelerator and the effects of the income multiplier
a. work against each other b. creates no gain in the economy as the effects cancel each other out c. creates the downward phase of the business cycle d. creates the upward phase of the business cycle e. explains why real business cycle theorists believe the economy is unstable and cyclical
The cost efficiency of labor is equal to the
A. MRP of labor divided by the unit price of labor. B. MPP of labor divided by the wage rate. C. MPP of labor times the wage rate. D. Marginal cost of output.
If the first copy cost of a music video is $223,000 and the marginal cost is $0, how much total cost would the firm incur if it produces 1 million copies?
A. zero B. $223,000 C. $1 million D. $1 million + $223,000