Some economists argue that monopolistically competitive markets are inefficient because:
a. the firms earn economic profits in the long run.
b. the firms' marginal costs and marginal revenues are not always equal.
c. firms do not produce the output rate that would minimize their average total cost.
d. barriers to entry are high.
c
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The presence of a learning curve may induce a decision maker in a startup firm to choose
A) low levels of output to exploit economies of scale. B) high levels of output to exploit economies of scale. C) low levels of output to shift the average cost curve down over time. D) high levels of output to shift the average cost curve down over time. E) to produce more than one output.
Which of the following is not a typical customer in the wholesale market for foreign exchange?
a. A central bank b. A tourist c. A large company d. The government e. A supranational agency
A line graph that shows rising and falling profits over several years would have a(n)
a. A 90 degree slope b. downward slope c. varied slope d. almost level slope
Tammie makes $150 a day as a bank clerk. She takes off two days of work without pay to fly to another city to attend the concert of her favorite music group. The cost of transportation for the trip is $250. The cost of the concert ticket is $50. The opportunity cost of Tammie's trip to the concert is:
a. $450 b. $300 c. $600 d. $500