Like a perfect competitor, a monopolistic competitor:
a. produces where price equals marginal cost.
b. produces a homogeneous product.
c. earns zero economic profit in the long run.
d. earns zero economic profit in the short run.
c
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Which of the following is a true statement regarding the economic growth model's predictions and how it actually affects the real world?
A) The growth model predicts that poor countries will catch up with rich countries, but lower-income industrialized countries are not catching up to higher-income industrialized countries as a group. B) The growth model predicts that poor countries should catch up with rich countries, but developing countries are not catching up to lower-income industrialized countries as a group. C) The growth model predicts that poor countries will catch up with rich countries, and this is what we observe across all developmental categories of countries. D) The growth model predicts that poor countries will never catch up with rich countries, but lower-income industrialized countries are catching up to higher-income industrialized countries as a group.
An increase in the population of an economy will result in decreased output
a. True b. False Indicate whether the statement is true or false
In the short run:
A. firms have the ability to enter or exit the industry. B. firms are able to alter some, but not all, of their factors of production. C. firms are unable to adjust their output choices. D. None of these are correct.
Social costs are
A. the costs associated with reaching and enforcing agreements. B. private costs plus any external costs. C. costs incurred when common property is used. D. the costs of the externality only.