Monopolistic competition is characterized by i) efficient scale ii) markup pricing over marginal cost iii) deadweight loss iv) excess capacity
a. i) and ii) only
b. ii) and iv) only
c. i), ii), and iii) only
d. ii), iii), and iv) only
d
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Use the following graph for a perfectly competitive firm to answer the next question.
If the firm is maximizing profits in the short run, the amount of economic profit per unit is
A. DH. B. EH. C. DE. D. DB.
Assume that by devoting all of its resources to the production of X, nation Alpha can produce 40 units of X. By devoting all of its resources to Y, Alpha can produce 60Y. Comparable figures for nation Beta are 60X and 40Y. We can conclude that
A. Alpha should specialize in Y and Beta in X. B. the terms of trade will be 3X equals 1Y. C. Alpha should specialize in X and Beta in Y. D. there is no basis for mutually beneficial specialization and trade.
Suppose that for the past two months, you have studied economics one hour a day. You now decide to study economics two hours a day. For the past two months
A) your marginal cost of studying economics for an hour must have exceeded its marginal benefit. B) the marginal cost of studying economics must have fallen. C) your marginal benefit from studying economics an hour must have been greater than its marginal cost. D) the opportunity cost of studying economics must have risen.
The most popular floating rate in swaps is
A) LIBOR. B) the Treasury note rate. C) the prime rate. D) the six-month Treasury bill rate.