How does the short-run equilibrium of a monopolistic competitor differ from a monopolist? How does it differ from a perfect competitor?
What will be an ideal response?
The short-run equilibrium of a monopolistic competitor looks just like that for a monopolist, with the exception that the demand curve facing the monopolist will be less elastic than the demand curve facing the monopolistic competitor. The equilibrium differs from a perfect competitor in that the demand curve slopes down, so price is greater than marginal cost.
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Using the data in the above table, the average fixed cost of producing 16 units is
A) $1.11 a unit. B) $1.25 a unit. C) $1.54 a unit. D) $2.22 a unit.
How are corporate profits taxed in the United States?
A) Earnings are taxed first by state sales taxes and then as corporate profits at the Federal level. B) Corporate profits are not taxed at all. C) Earnings are taxed first as personal income then as corporate profits at the Federal level. D) Earnings are taxed first as corporate profits then as personal income after dividends are paid.
Policymakers may be uncertain about the structure of the economy because
A) initial releases of data may be less accurate than later data releases. B) they don't know the predominant source of shocks to the economy. C) they don't know how shocks affect people's expectations. D) they are not aware of modern macroeconomic modeling techniques.
Policies adopted by the Truman administration effectively avoided inflation during the Korean War. These policies included:
a. increased personal and corporate tax rates. b. price and wage controls. c. reduced purchases of government debt by the Federal Reserve. d. discontinuance of the practice of "pegging" interest rates. e. All of the above.