Monopolistic competition and perfect competition are different in that monopolistically competitive firms:
a. cannot earn profits in the short run
b. face firm demand curves that are less elastic than perfectly competitive firms.
c. face substantial barriers to entry.
d. earn economic profits in the long run.
b
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Use the following table to answer the question below. Units ConsumedTotal UtilityMarginal Utility00-1W20235X3Y10440ZThe value for Z is
A. -10. B. -5. C. 5. D. zero.
If the Federal Reserve wants to reduce inflation from 4 percent to 3 percent permanently, how can that goal be achieved, and what impact will that have on employment in the short run and the long run? Support your answer with a graph of the Phillips
curve in the short run and the long run.
With respect to controlling the money supply, the law requires the Fed to take orders from:
a. the President. b. the Speaker of the House. c. the Secretary of the Treasury. d. no one?the Fed is an independent agency.
Certificates of ownership of a company are called:
A. financial liabilities. B. stocks. C. limited liabilities. D. profits.