Which will be TRUE for a monopolistic competitor experiencing short-run losses?
A) P > ATC
B) P = ATC
C) P < ATC
D) P < MC
Answer: C
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If an increase in the incomes of people who live in the Los Angeles area leads to an increase in the demand for season tickets for games played by the Los Angeles Lakers professional basketball team, then these season tickets are
A) a normal good. B) an inferior good. C) an income complement. D) an income substitute.
The incentive to work is an ingredient of the negative income tax because:
a. if families do work, they will be eliminated from the program. b. if families don't work, they will be eliminated from the program. c. the more income earned in the workplace, the higher the family's after-tax income. d. the more income earned in the workplace, the higher the payment from the government. e. the amount earned in the workplace is not subject to income taxes.
Monopoly is a word derived from Greek origins that means, roughly, single seller. Why is the definition of monopoly as single seller inadequate in economic terms?
Which statement is correct? The long-run supply curve for a purely competitive:
A. increasing-cost industry is perfectly elastic. B. increasing-cost industry is upsloping. C. decreasing-cost industry is upsloping. D. increasing-cost industry is less elastic than the industry's short-run supply curve.