In the long-run, a firm in monopolistic competition produces an amount of output that sets
A) P > ATC and MR = MC.
B) P > ATC and MR > MC.
C) P = ATC and MR = MC.
D) P = ATC and MR > MC.
C
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The present value of net benefits (PVNB) is
a. found as (PVB – PVC) b. equal to the ratio of PVB to PVC c. equal to the ratio of PVC to PVB d. not relevant to benefit-cost analysis
When the price of a good spikes dramatically, the information conveyed in the market demonstrates that
A) greed has increased among the suppliers. B) greed has increased among the demanders. C) the good has become more scarce than before. D) the good has become less scarce than before.
In the country of Darrowby, net domestic income at factor cost is $2.0 million. Gross domestic product is $3.0 million, and depreciation is $0.5 million. Indirect taxes less subsidies ________
A) are $1 million B) are $0.5 million C) cannot be calculated D) are -$0.5 million
Vicki consumes meat loaf and pizza. To keep her utility constant, you must give her more of one good if you take some of the other away. This information implies that
A. Vicki’s marginal rate of substitution must be constant along her indifference curve. B. Vicki’s indifference curve must have a negative slope. C. the prices Vicki must pay for meat loaf and pizza are always the same. D. Vicki’s marginal utility from each good must be constant along her indifference curve.