Exhibit 10-2 A monopolistic competitive firm
As represented in Exhibit 10-2, the maximum long-run economic profit earned by this monopolistic competitive firm is:
A. zero.
B. $200 per week.
C. $1,000 per week.
D. $20,000 per week.
Answer: A
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In which case would the quantity of money demanded by the public tend to increase by the greatest amount?
A. The interest rate decreases and nominal GDP increases. B. The interest rate decreases and nominal GDP decreases. C. The interest rate increases and nominal GDP decreases. D. The interest rate increases and nominal GDP increases.
If marginal revenue equals zero, then demand at this level of output is
A) perfectly inelastic. B) inelastic. C) unit elastic. D) elastic.
When the real wage is below the equilibrium price in the labor market ________
A) we have an excess supply of labor and the real wage should fall B) we have an excess demand of labor and the real wage should fall C) we have an excess demand of labor and the real wage should increase D) we have an excess supply of labor and the real wage should increase E) none of the above
If incomes in the United States increase, other things equal, then U.S. _____
a. imports increase and exports remain constant b. exports increase and imports decrease c. imports decrease and exports decrease d. imports remain constant and exports increase e. net exports remains constant