Use the following two statements about monopolistic competition to answer this question
I. In the long run, the price of the good will equal the minimum of the average cost.
II. In the short run, firms may earn a profit.
A) I and II are true.
B) I is true, and II is false.
C) I is false, and II is true.
D) I and II are false.
C
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The long-run Phillips curve is ________ than the short-run Phillips curve
A) flatter B) steeper C) more volatile D) less stable
Which of the following is not a criticism of the national defense argument for trade restrictions?
a. National defense only makes sense in the absence of international trade. b. Stockpiling basic military hardware could eliminate the need to protect the domestic industry. c. Nearly all industries can make some claim to strategic importance, so such trade restrictions can get out of hand. d. National defense considerations can outweigh concerns about efficiency. e. Government subsidies to domestic producers may be more efficient than trade restrictions.
The people firms hire to attempt to convince state legislators and members of Congress to pass laws that are favorable to the economic interests of the firms are called
A) economic advisors. B) legislative assistants. C) government bureaucrats. D) lobbyists.
Refer to the information in Figure 16.5 below to answer the question(s) that follow.
?Figure 16.5Figure 16.5 shows the marginal benefits of emitting pollution for the only two chemical companies in an industry, Alpha Chemicals and Beta Chemicals. Before any tax on pollution emissions is imposed, each company views pollution as being free.Refer to Figure 16.5. The government decides to impose a tax on pollution emissions to cut total emissions in this industry in half, and based on this decision it has set the tax at $100 per ton of emissions. The total amount of pollution emissions desired by the government is ________ tons.
A. 25 B. 50 C. 75 D. 100