If a firm in a monopolistically competitive market has a demand curve that is shifting to the right, it will stop shifting when:
A. the firm raises its price.
B. the firm lowers its price.
C. firms stop entering the market.
D. firms stop leaving the market.
D. firms stop leaving the market.
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Refer to Table 9-14. The real average hourly earnings for 1965 in 2010 dollars equal
A) $3.87. B) $5.80. C) $12.10. D) $18.14.
If production is characterized by variable technology, the optimal level of air quality occurs where
a. the marginal private cost of air quality equals the marginal social benefit b. the marginal social cost of air quality equals the marginal social benefit c. the marginal social cost of air quality equals the marginal private cost of air quality d. government regulators set it e. all costs are absorbed by the polluter
Which of the following is a primary difference between price searchers and price takers?
a. Price searchers maximize profits, but price takers do not. b. Price searchers have to cut their price to sell additional output, but price takers do not. c. The market demand for goods produced by price searchers is downward sloping, while the market demand for goods produced by price takers is horizontal. d. Profit-maximizing price searchers will expand output to the quantity where marginal revenue equals marginal cost, but price takers will not.
Which of the following is NOT a determinant of the price elasticity of demand?
A. the share of the budget spent on the item B. the time the consumer has to adjust to the price change C. the availability of potential substitutes D. the cost to produce the product