In the long run, a monopolistic competitor will produce to the point at which
A) average total costs are at the minimum of possible ATC.
B) average total costs are higher than the minimum of possible ATC.
C) resources are used at the lowest possible cost.
D) at the lowest possible price.
Answer: B
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If the variable on the vertical axis increases by 20 and the variable on the horizontal axis increases by 5, the slope of the line is
A) 0.25. B) 4. C) 15. D) 100.
In chapter 1 your authors marveled at the way highway traffic is orderly and self-regulating. In chapter 6, however, they discuss a growing problem on urban roadways—congestion. What's the cause of roadway congestion?
A) Typically, road use is a scarce good with a zero price tag. B) Not enough drivers have studied economics. C) More and more drivers think only of themselves. D) Population growth
Imagine that someone offers you $X today or $1,500 in 5 years. If the interest rate is 4 percent, then you would prefer to take the $X today if and only if
a. X > 1,055.56. b. X > 1,120.89. c. X > 1,232.89. d. X > 1,338.26.
The largest exporter of goods and services in the world is
a) China b) European Union c) Japan d) Mexico e) Saudi Arabia