In a monopolistically competitive market, social welfare would be enhanced if
a. price equaled marginal cost.
b. government regulation eliminated the product-variety externality.
c. the government raised taxes to subsidize firms that price below average total cost.
d. there were fewer firms, making the industry closer to an oligopoly.
a
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Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
The idea that business firms attempt to maintain a fixed relation between their stock of capital and their expected sales is the basis for the
A) accelerator hypothesis of net investment. B) permanent-income hypothesis. C) life cycle hypothesis. D) adaptive expectations approach.
According to economists, which of the following acts was partially responsible for the Great Depression of the 1930s?
a. The Robinson-Patman Act b. The National Recovery Act c. The Smoot-Hawley Tariff Act d. The Sarbanes-Oxley Act e. The Sherman Antitrust Act
Subjective probabilities
A. are often inaccurate. B. are seldom used in management decisions. C are usually identical to objective probabilities. D. All of the above