Entry into a monopolistically competitive industry
A. is very difficult.
B. is about the same as entering a monopoly industry.
C. is relatively easy.
D. can be easy or difficult, depending on the type of product.
Answer: C
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If the market price is $5 and a perfectly competitive firm is producing 1,200 units and the marginal cost to produce the 1,200th unit is $4.53, which of the following is true?
A) The difference between marginal revenue and marginal cost (MR - MC) for the 1,200th unit is positive. B) The firm is maximizing profit. C) The firm should decrease production to maximize profit. D) The difference between marginal revenue and marginal cost (MR - MC) for the 1,200th unit is negative.
A decrease in demand will result in a(n)
a. increase in equilibrium price and quantity b. decrease in equilibrium price and quantity c. decrease in equilibrium price and an increase in equilibrium quantity d. increase in equilibrium price and a decrease in equilibrium quantity e. change in equilibrium price and quantity only if supply changes too
The largest overall recipients of remittances are:
A. Chile and Mexico, which each get more than $50 billion per year. B. China and India, which each get more than $5 billion per year. C. China and India, which each get more than $50 billion per year. D. Chile and Mexico, which each get more than $5 billion per year.
If exports are being excluded unfairly from a market, the World Trade Organization (WTO) may authorize
A. Quotas. B. Other nontariff barriers. C. Retaliatory comparative advantages. D. Retaliatory tariffs.