In the long run, a monopolistically competitive industry is characterized by all of the following, except
A. firms earning zero economic profits.
B. production that would exhibit lower costs per unit at higher output levels.
C. an efficient use of resources.
D. firms producing where price is above marginal cost.
Answer: C
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When comparing market and public sector decision making, which statement is NOT true?
A) Self-interest is the motivating force in each decision making arena. B) In both decision making sectors, majority rule is how things are done. C) In both decision making sectors, there are scarcity constraints. D) Collective (political) outcomes and economic outcomes may differ.
In the short run the firm has no more than one fixed input
a. True b. False Indicate whether the statement is true or false
Normative economics is
A) analysis involving value judgments about economic policies; or a statement of "what ought to be." B) analysis that is strictly limited to making either purely descriptive statements or scientific predictions. C) analysis of the behavior of the economy as a whole. D) decision making undertaken by households and business firms.
A concentrated industry has ________ that dominate a market.
A. an infinite number of firms B. a large number of firms C. three or fewer firms D. a relatively small number of firms