In the long run, in monopolistic competition
A) a firm's price equals its marginal cost.
B) firms make an economic profit.
C) firms make zero economic profit.
D) Both answers A and C are correct.
C
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If the prices of computer tablets rise, we would expect the number of tablet covers purchased to
A) increase. B) decrease. C) be equal to ten. D) be equal to one.
You operate a factory that produces beach towels. Your current level of output equals 2,000 towels per week. Your weekly variable cost equals $8,000 . If your total cost each week equals $9,000 . it follows that:
a. the average variable cost of production equals $2 per towel. b. the average variable cost of production equals $4 per towel. c. the average total cost of production equals $8 per towel. d. none of the above
Which of the following statements is false?
A) Money is the only good that can (or does) serve as a store of value. B) In a barter economy, there is no good that serves as a unit of account. C) There are higher transaction costs of making exchanges in a barter economy than in a money economy. D) Money functions as a medium of exchange, unit of account, and store of value.
The threat of rejection in market transactions:
A. leads to better products for consumers. B. leads to lower prices for consumers. C. leads to greater cooperation between buyers and sellers. D. does all of these.