In the short run, monopolistically competitive firms:
A) can earn an economic profit, minimize a loss, earn a normal profit, or shut down.
B) can only earn a normal profit.
C) can only earn an economic profit.
D) must shutdown if price is less than average total cost.
Ans: A) can earn an economic profit, minimize a loss, earn a normal profit, or shut down.
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In April, market analysts predict that the price of titanium will fall in May. What happens in the titanium market in April, holding everything else constant?
A) The demand curve shifts to the right.
B) The supply curve shifts to the left.
C) The quantity demanded and the quantity supplied increase.
D) The supply curve shifts to the right.
According to the majoritarian vision of democracy, what role should citizens who hold minority preferences play in determining policy?
A. They should serve as a check on the power of the majority. B. Their opinions should be a part of a consensus that determines policy. C. Citizens with minority preferences should have no role in the policymaking process. D. They should be as fully involved in the process as those who hold majority preferences.
According to Robert Fogel, economic growth ________ health, and health ________ economic growth
A) improves; worsens B) improves; improves C) worsens; improves D) worsens; worsens
If an important component of a firm's production process is difficult to specify in a contract and even more difficult to enforce in its production standards, then it probably makes sense to:
A. vertically integrate upstream to build the component. B. incur information cost. C. use a simple short-term contract. D. buy the component in the open market.