A monopolistically competitive firm produces where
A. marginal revenue equals price.
B. marginal revenue equals marginal cost.
C. its marginal revenue curve lies above its demand curve.
D. its marginal revenue curve intersects the quantity axis.
Answer: B
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The fraction, or percentage, of total income which is consumed is called the:
a. Break-even income b. Average propensity to consume c. Consumption schedule d. Marginal propensity to consume
Exhibit 9-1 GDP and consumption data GDP Consumption Aggregate Expenditures Unplanned inventory $0 $0.5 1 1.0 2 1.5 3 2.0 4 2.5 5 3.0 6 3.5 7 4.0 8 4.5 As shown in Exhibit 9-1, if equilibrium GDP is $5 trillion, then the total of investment, government spending, and net exports is:
A. $1 trillion. B. $2 trillion. C. $3 trillion. D. $4 trillion.
A concentration ratio gives
A) the average size of the firms in an industry. B) the total sales of four or eight of the mid-sized firms in the industry. C) the percentage of all sales contributed by the four or eight largest firms in the industry. D) the sales of the four largest firms in the industry divided by the sales of the eight largest firms in the industry.
Comparative advantage exists when a person or a country can produce a good or service at a lower _____ than others.
A. fixed cost B. variable cost C. opportunity cost D. total cost