Steve is about to start up a business in a monopolistically competitive market. Which of the following can he expect?
a. He can expect market entry to be difficult as there exist entry barriers.
b. He can expect to enjoy a huge amount of market power.
c. He can expect to face a highly inelastic demand curve.
d. He can expect to find close substitutes of the product he is planning to produce.
e. He can expect to face an infinitely elastic demand curve.
d
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From a society’s viewpoint, when all resources are fully employed, a decision to have more of one thing means we must give up something else.
Answer the following statement true (T) or false (F)
Suppose Dunkin' Donuts buys coffee beans from a wholesaler for $1. They package the beans up and sell them as their own "Dunkin' Donut" beans for $10 at their store. How much value is added to the economy?
A) $10 B) $11 C) $13 D) $15
All else constant, a decrease in the per unit price of labor would create an incentive for a firm manager to substitute labor for capital in the firm's production process
Indicate whether the statement is true or false
Which of the following is accurate about John Maynard Keynes?
a. He was one of the most influential economists in early U.S. history. b. He believed economics is a subject but not a way of thinking. c. He believed economics is not just a subject area but also a way of thinking. d. He believed that economics is not a subject but is a way of thinking.