If a monopolistically competitive firm selling an information product engages in marginal cost pricing, it will
A. lower costs.
B. fail to earn sufficient revenues to cover its fixed costs.
C. break even.
D. earn additional profits.
Answer: B
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Variable costs increase when output rises.
Answer the following statement true (T) or false (F)
standard deck of playing cards has 52 cards with 13 cards in each of the four suits; hearts, diamonds, spades, and clubs. Each of the four suits has a king card. If a single card is drawn from a standard deck, what is the probability that the card will be a king?
A) 0.25 B) 0.077 C) 0.33 D) 0.019
Which best describes the "invisible hand" concept?
a. Sufficiently detailed central direction of an economy will maximize the public's best interests b. The desires of producers and resource suppliers to further their own self-interest will automatically promote the social interest c. The market system works best when resources are highly substitutable d. The problem of scarcity can best be overcome in a system
Refer to the graph above. If the initial equilibrium interest rate was 5 percent and the money supply increased by $100 billion, then the new interest rate would be:
1 percent 2 percent 3 percent 4 percent