Which of the following is generally true of a monopolistic competitor operating in the long run?
a. price greater than minimum average total cost
b. price equal to marginal revenue
c. price equal to marginal cost
d. positive economic profits
a
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In repeated games, all of the below make it easier to get out of bad situations except
a. Be nice, no strikes first b. Respond immediately to rivals c. Punish competitors as much as you can d. Make sure your competitors can easily interpret your actions
In economics, the true cost of making a choice is the value of what must be given up.
Answer the following statement true (T) or false (F)
Efficiency is illustrated by
a. both the production possibilities frontier and the circular-flow diagram. b. neither the production possibilities frontier nor the circular-flow diagram. c. the production possibilities frontier only. d. the circular-flow diagram only.
Kate is a professional opera singer who gives voice lessons. The vocal-music industry is competitive. Kate hires a business consultant to analyze her financial records. The consultant recommends that Kate give fewer voice lessons. The consultant must have concluded that Kate's
a. total revenues exceed her total accounting costs. b. marginal revenue exceeds her total cost. c. marginal revenue exceeds her marginal cost. d. marginal cost exceeds her marginal revenue.