A monopolistic competitor is producing a level of output at which price is $200, marginal revenue is $100, average total cost is $210, marginal cost is $100, and average variable cost is $180. In order to maximize profit, the firm should
A. keep output the same.
B. shut down.
C. increase output.
D. decrease output.
Answer: A
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Wages that are higher than the current market wage:
A) reduce the cost of production of various goods. B) lower the aggregate price index. C) dissuade workers from shirking. D) lower the productivity of workers.
An increase in income shifts indifference curves outward.
Answer the following statement true (T) or false (F)
An example of how economic growth might not lead to economic development is:
A. the average income in a nation increased with greater GDP growth. B. when a nation's economy grew, the rate of malnutrition among children was relatively constant. C. the rate of literacy increased among all groups when a nation's economy grew. D. people had greater social mobility due to the growth experienced in the nation.
Many individuals without health insurance receive "free" care. What are the sources of most of the care they receive?
a. Private, for-profit hospitals b. Multi-specialty physicians' practices c. Private, not-for-profit hospitals d. Public hospitals and clinics e. Solo practitioners and their associates