The long-run equilibrium of a monopolistically competitive firm is characterized by
A) a tangency of the average total cost curve with the firm's demand curve.
B) price equal to marginal cost.
C) production at the minimum point of the firm's average total cost curve.
D) production at the minimum point of the firm's average variable cost curve.
Answer: A
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A 100 acre wood used by four people for collecting firewood is common property. The socially efficient use of the wood could be achieved by assigning property rights
a. only if they go to whichever of the four most values the wood. b. only if they are divided equally among all four users. c. only if the are divided according to those who have been using it the longest. d. to any of all of the four.
The endogenous growth model predicts that
A) there is convergence in incomes per capita across countries. B) output per capita is constant. C) rich countries will always become poor. D) differences in per capital incomes across countries persist forever.
If the United States could produce 4 tons of potatoes or 2 tons of wheat per worker per year, while Ireland could produce 2 tons of potatoes or 3 tons of wheat per worker per year, the country with the comparative advantage in producing potatoes is ____ and the country with the absolute advantage in producing potatoes is ____
a. the United States; the United States b. the United States; Ireland c. Ireland; the United States d. Ireland; Ireland
Which of the following would not shift the market demand for labor, ceteris paribus?
A. The productivity of labor. B. The number of employers. C. The demand for final products. D. The wage paid to labor.