If you can produce more of something than others with the same resources, you have

In exchange for a share of the revenues earned on campus, State U has granted CheapFizz the exclusive right to sell soft drinks in the student union and in vending machines on campus. Prior to the deal, three soft drink companies sold beverages on campus; now no other soft drink company is allowed to sell its products on campus. Prior to the deal, a 12-ounce can of CheapFizz sold for 75 cents. After the deal you would expect a 12-ounce can of CheapFizz to sell for:

A. more than 75 cents because CheapFizz is the only company that can sell soda on campus. B. 75 cents because that is the market price. C. less than 75 cents because CheapFizz will have greater volume and so can lower its price. D. more than 75 cents because the demand curve for CheapFizz soda will shift to the left.

In monopolistic competition

A) each firm's price cannot deviate from the average price of other firms. B) each firm supplies a small part of the total market output. C) one firm's actions directly affect the actions of the other firms. D) collusion is possible.

In the long run, if government increases spending ________

A) interest rates decrease B) it crowds out private investment C) saving increases D) all of the above E) none of the above

If the marginal propensity to consume (MPC) is 0.90, the value of the spending multiplier is 90

a. True b. False Indicate whether the statement is true or false