In monopolistic competition, in the long run customers pay a price that is
A) less than the minimum ATC.
B) more than the minimum ATC.
C) equal to both the minimum ATC and the minimum AVC.
D) equal to the minimum ATC, but not equal to the minimum AVC.
B
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The U.S. is probably the most open international market among the industrialized countries. What then does the U.S. have to gain by joining the WTO?
What will be an ideal response?
If the reserve ratio is 10 percent, $1,400 of additional reserves can create up to
a. $140 of new money. b. $14,000 of new money. c. $140,000 of new money. d. None of the above is correct.
Another term for intermediaries who specialize in reducing transaction costs is
A) service providers. B) consultants. C) middlemen. D) revenue agents.
Related to the Economics in Practice on p. 437: Actions that impact the state of the environment, like pollution, are considered ________ activities in terms of the national income and product accounts.
A. depreciable B. nonmarket C. underground economy D. market