Which of the following is not a characteristic of monopolistically competitive firms in the long run:
A. firms earns zero profits
B. each firm maximizes profits.
C. firms charge a price above marginal cost.
D. there is no deadweight loss.
D. there is no deadweight loss.
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Taxes can have an important effect on
A) saving. B) economic growth. C) the labor supply. D) all of the above
Suppose that the firm's only variable input is labor. When 50 workers are used, the average product of labor is 50 and the marginal product of labor is 75. The wage rate is $80 and the total cost of the fixed input is $500. Which of the following is true?
A. Marginal cost is increasing. B. Average variable cost is increasing. C. Average variable cost is decreasing. D. Cannot determine without more information.
If a good can be consumed by one person without reducing its availability to others, then it is a ________ good.
A. pure public B. nonrival C. nonexcludable D. common
An example of an external cost of alcohol is
A. traffic fatalities attributable to drunk driving. B. the cost of producing whiskey. C. the cost to alcoholics of going to rehabilitation clinics. D. the cost to bars of hiring janitors to clean up after their customers.