In the long run, a monopolistic competitor will
a. always produce at minimum efficient scale
b. produce too little output to achieve minimum cost per unit
c. use limit pricing to forestall competition
d. earn economic profits
e. standardize its product
B
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The Other America, which challenged the notion that we had conquered poverty, was written by ___________.
Fill in the blank(s) with the appropriate word(s).
Of the determinants of labor productivity, the more important one is
A) the capital-labor ratio. B) the size of the labor force. C) total factor productivity. D) the hours worked by the labor force.
Marti wanted to replenish her wardrobe and went to the $30 rack at K-Mart. There she saw three stylish dresses. She was delighted because she would have been willing to pay $40 for the first dress, $35 for the second dress, and $30 for the third dress. She bought all three. Which of the following is correct?
a. Only the third dress sold for its price. b. The consumer surplus she derived was $90. c. The consumer surplus she derived was $105. d. The consumer surplus she derived was $15. e. The consumer surplus she derived was zero because, for the third, price was exactly what she was willing to pay.
Traditional economic models assume that people care about:
A. relative consumption. B. absolute consumption. C. both absolute and relative consumption. D. neither absolute nor relative consumption.