A firm in a monopolistically competitive market can earn short-run profits but not long-run profits
a. True
b. False
Indicate whether the statement is true or false
True
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What must be true for a consumer to enjoy a consumer surplus from a unit of a good?
What will be an ideal response?
Social Security is an example of
A) a progressive income tax. B) a subsidized service. C) an income maintenance program. D) an unemployment benefit.
Refer to Table 4-6. The table above lists the marginal cost of polo shirts by Marko's, a firm that specializes in producing men's clothing. If the market price of Marko's polo shirts is $13, Marko's will produce
A) 1 shirt. B) 2 shirts. C) 3 shirts. D) 4 shirts.
The expansion induced by a rise in the money stock will be greatest
A) the higher the level of capital mobility in an economy. B) the lower the level of capital mobility in an economy. C) when the economy has a fixed exchange rate. D) when this rise is fully sterilized by the monetary authority.