In the short run, a firm in a monopolistic competition will produce the amount of output where its
A) marginal revenue equals marginal cost and will set its price according to the demand for that amount of output.
B) marginal revenue equals marginal cost and takes the market price as given.
C) average revenue equals average cost and will set its price according to the demand for that amount of output.
D) average revenue equals its average cost and takes the market price as given.
A
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One reason why an economy may not smoothly adjust to a macroeconomic shock is that
A) prices are flexible in the long run. B) prices are sticky in the short run. C) wages are sticky in the long run. D) prices and wages are sticky in the long run.
Consider two items that might be included in GDP: (1) the estimated rental value of owner-occupied housing and (2) purchases of newly-constructed homes. How are these two items accounted for when GDP is calculated?
a. Both item (1) and item (2) are included in the consumption component of GDP. b. Item (1) is included in the consumption component of GDP, while item (2) is included in the investment component of GDP. c. Item (1) is included in the investment component of GDP, while item (2) is included in the consumption component of GDP. d. Only item (2) is included in GDP, and it is included in the investment component.
Among female workers over age 25, about what percent has a college degree? What is this percentage for black female workers over age 25?
Major westward moves in sports franchises began in the major sports in
A. 1969 with the Seattle Pilots as an expansion team. B. 1972 with the Washington Senators becoming the Texas Rangers. C. the 1950s with two New York teams (the Dodgers and the Giants) moving to California. D. 1922 with the Boston Braves moving to Atlanta.