A monopolistically competitive industry is characterized by having no barriers to entry.
Answer the following statement true (T) or false (F)
True
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If supply is perfectly elastic, a sales tax imposed on sellers is paid by
A) only the buyers. B) only the sellers. C) both the buyers and sellers. D) None of the above answers is correct.
Suppose there are two members of the U.S. Congress who were once economics professors. Why is it important to be able to distinguish their positive from their normative statements about economic policy? a. Their positive statements help us understand the economy's response to a particular policy, while their normative statements reflect their value judgments. b. Their positive statements help
us understand the good results of a policy change, and their normative statements help us understand the negative results. c. We really do not have to worry about them since trained economists never make normative statements. d. Economists are always making assumptions, and policy should not be based on assumptions.
Market demand curves are found by
a. vertically summing individual demand curves. b. horizontally summing individual demand curves. c. summing individual demand curves in a parallel fashion. d. adding the slopes of individual demand curves.
A monopsonist finds its profit maximizing quantity of labor employed at the point at which
A. marginal factor cost is zero. B. marginal revenue product is zero. C. marginal revenue product equals marginal factor cost. D. total cost equals total revenue.