The most profitable output level can be found by looking at which two curves?
a. P and MR.
b. MR and MC.
c. MC and TC.
d. P and AVC.
e. AVC and ATC.
b
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A student wrote: "Monopolistic competition is a market structure in which a small number of firms compete by making an identical product." If you were the instructor, how would you correct this statement?
What will be an ideal response?
Its Consumer Advisory Committee conducts open market operations of the Fed
Indicate whether the statement is true or false
Idiosyncratic error is the error that occurs due to _____.
A. incorrect measurement of an economic variable B. unobserved factors that affect the dependent variable and change over time C. unobserved factors that affect the dependent variable and do not change over time D. correlation between the independent variables
Use the following graph to answer the next question.
What combination would most likely cause a shift from AD1 to AD3?
A. A decrease in taxes and a decrease in government purchases B. An increase in taxes and a decrease in government purchases C. A decrease in taxes and an increase in government purchases D. An increase in taxes and an increase in government purchases