Which of the following is not true of a monopolistically competitive firm?
A. The firm will maximize profits by producing where MR = MC.
B. The firm will not likely earn an economic profit in the long run.
C. The firm will shut down if price is less than average variable cost.
D. The firm will produce an efficient quantity where average total cost is minimized.
Answer: D
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The table below shows data for the United States
Nominal Interest Rate Inflation Rate 2013 5.25 4 2014 5 2 2015 4.5 4.3 Between 2013 and 2014, the real interest rate ________ and caused a ________ the demand for loanable funds curve. A) increased; rightward shift B) decreased; leftward C) increased; movement upward along D) decreased; downward along
Use the equation Qd = 5,000 - 15P + 50A + 3Px - 4I, (2,117 ) (2.7 ) (15 ) (2 ) (3 )
where Qd = Quantity Demanded, P = Good Price, A = Advertising Expenditures, Px = Price of a Competitive Good, A = Advertising Expenditures, I = Average Monthly Income, and the Standard Errors of the Regression Coefficients are shown in Parentheses. Calculate the t-statistics for each variable and explain what inferences can be drawn from them. If R2 of this equation is 0.25, what inference can be drawn from it?
The price to attend a NBA basketball game in Chicago is $55 while the CPI in Chicago is 153. The CPI in Charlotte is 108 while the price to attend a NBA basketball game is $52
Which city offers a smaller real cost of attending a NBA basketball game?
Which of the following would most likely occur if the federal government decreased its spending and reduced the size of the budget deficit during a period of full employment?
a. The rate of inflation would decline. b. The rate of inflation would rise. c. A recession would develop. d. Interest rates would fall.