The above figure shows a restaurant engaged in monopolistic competition with other restaurants. The equilibrium price at this restaurant is ________ per meal
A) $20
B) $30
C) $50
D) less than $20
E) more than $50
C
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The above figure shows the cost curves for a typical firm in a competitive market. If price = 8.5, then
A) the firm will produce 10 units. B) the firm will produce 55 units. C) the firm will earn positive profits. D) None of above.
While waiting in line to buy one cheeseburger for $1.50 and a medium drink for $1.00, Sally notices that she could get a value meal that contains both the cheeseburger and medium drink and also a medium order of fries for $2.75 . She thinks to herself, "Is it worth the extra 25 cents to get the medium fries?" To an economist, Sally's decision is an example of:
a. marginal analysis. b. basing decisions on total, rather than marginal, value. c. an unintended consequence. d. the fallacy of composition.
Which of the following is most likely to be a serious obstacle retarding the growth of less-developed nations?
a. a lack of knowledge about modern technology b. a lack of natural resources c. slow population growth d. low capital formation as the result of a weak legal system
Which of the following are signals to the owners of scarce resources about the best uses of those resources?
A. Economic indicators B. The accounting cost of those resources C. Government regulations D. Profits of businesses