The market for agricultural products such as wheat or corn would best be described by which market model?
A. Monopolistic competition
B. Pure competition
C. Pure monopoly
D. Oligopoly
B. Pure competition
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What is meant by the term "marginal analysis"? Suppose an individual has to choose between renting four apartments at different distances from his place of work
The individual has to commute to work on five days of the week and as such will require different quantities of gasoline depending on the apartment he decides to rent. The monthly rents and expected gasoline consumption from each of the apartments is shown in the table below. If the price of gasoline is $5 per gallon, using marginal analysis, determine the optimum choice for the individual. Which principal is used for this optimization? What does it state? Apartment Gasoline Consumption (gallons per month) Rent ($ per month) 1 5 1,100 2 10 1,000 3 15 960 4 20 940
During the 2000s, the Federal government's deficit
a. moved from large deficits to even larger deficits. b. changed little as a percent of GDP. c. moved from large surpluses to large deficits. d. rose largely as a result of large tax cuts in 2001 and 2004. e. both c and d.
If Happy Cleaners and Sparkle Cleaners are in a Cournot oligopoly and Happy Cleaners has a higher cost of production than Sparkle Cleaners, in equilibrium, Happy Cleaners will produce ________ than Sparkle Cleaners and earn an economic profit that is ________ Sparkle Cleaners.
A) more; less than B) less; less than C) less; the same as D) more; the same as
A business-stealing externality is
a. an externality that is likely to be punished under antitrust laws. b. the negative externality that occurs when one firm attempts to duplicate exactly the product of a different firm. c. an externality that is considered to be an explicit cost of business in monopolistically competitive markets. d. the negative externality associated with entry of new firms in a monopolistically competitive market.