In the three-step method for monopolistic competition, which of the following is accomplished in step 1?
a. finding the marginal revenue
b. finding the total costs
c. finding the total revenue
d. finding the profit maximizing output level
d. finding the profit maximizing output level
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A "pure exchange economy" is one in which producers and consumers are evenly divided.
Answer the following statement true (T) or false (F)
In a country with floating exchange rates and low capital mobility, an increase in government spending will be
A) highly effective. B) less effective than with high capital mobility. C) not effective at all. D) harmful to the growth of real incomes.
Paul's Plumbing is a small business that employs 12 people. Which of the following is the best example of an implicit cost incurred by this firm?
a. The tax payments on property owned by the firm. b. The wages paid to the 12 employees. c. The half of the payroll taxes on the wages of the 12 employees paid by the employers, but not the half paid by the employees. d. The accounting services provided free of charge to the firm by Paul's wife, who is an accountant.
The supply of loanable funds curve
a. is upward sloping b. is downward sloping c. is horizontal d. begins sloping upward, then levels off e. may slope either upward or downward, depending upon the interest rate