In the model of monopolistic competition, compared to a firm with a higher marginal cost, a firm with a lower marginal cost will set a ________ price, produce ________ output, and earn ________ profits
A) lower; more; more
B) higher; more; more
C) lower; less; less
D) higher; less; less
E) higher; less; more
A
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If by purchasing more apples and fewer oranges you increase your total utility, then apples must be cheaper than oranges
Indicate whether the statement is true or false
The following is an example of risk aversion
a. those applying for a well-paid job tend to be unqualified b. more reckless drivers opt for cars with fewer safety devices c. the contractor with the lowest bid for a is the most qualified d. Initial Public Offerings (IPOs) seek investors when prospects look good
The primary goal of economics is to help people make money
a. True b. False Indicate whether the statement is true or false
Suppose the production of widgets generates negative externalities but no positive externalities. If widget producers suddenly had to pay the true marginal cost of their product for every unit they produced, including all externalities, producers would
A. have less of an incentive to control their pollution output. B. produce and sell at a lower price than before. C. produce less than the current level of output. D. produce more than the current level of output.