Answer the following questions true (T) or false (F)
1. Productive efficiency does not hold for a profit-maximizing, monopolistically competitive firm in the long-run equilibrium because the firm operates along the diseconomies of scale region of its average total cost curve.
2. Monopolistically competitive firms achieve allocative efficiency but not productive efficiency.
3. A monopolistic competitor does not earn profits in the long run unless it can successfully differentiate its product in the minds of its consumers.
1. FALSE
2. FALSE
3. TRUE
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In Moscow in 1989, what were taxi drivers using as a medium of exchange?
A) Russian rubles B) Marlboro cigarettes C) gold coins D) caviar
If it is not possible for a pharmaceutical drug maker to sell its generic cholesterol reducing drug along with some name brand cholesterol reducing drugs, we have an example of
A) monopoly due to ownership of key resources. B) monopoly due to governmental entry restrictions. C) monopoly due to economies of scale. D) pure competition.
Of the following, which is most likely to be a normal good?
a. hamburger b. automobiles c. used clothing d. low-rent housing units e. macaroni and cheese
When box office receipts are not corrected for inflation,
a. The Sound of Music ranks as the most popular movie of all time. b. Gone with the Wind does not rank as one of the 50 most popular movies of all time. c. Titanic ranks as the most popular movie of all time. d. Avatar does not rank as one of the 50 most popular movies of all time.