A monopolistically competitive firm can raise its price somewhat without fear of great change in unit sales because of
A. Brand loyalty.
B. Economies of scale.
C. Large market shares of firms in the market.
D. Inelastic demand.
Answer: A
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The term productive efficiency refers to
a. any short-run equilibrium position of the competitive firm b. the production of all goods and services that consumers need c. the production of a good at the lowest long-run average cost d. the equality between average total and average variable cost e. satisfying the condition that MR = MC
Economic takeoff:
A. occurs when development becomes self-sustaining. B. will eventually occur in all developing countries. C. typically occurs in the absence of foreign investment. D. has yet to occur in any developing country.
Dumping typically occurs because
A) the exporting country raises its prices to increase profits. B) the exporting country usually is experiencing a recession and has excess production. C) the importing country is experiencing a recession. D) the importing country has assessed significant tariffs.
Which of the following characterizes the IACs?
a. High per capita GDP growth and high population growth. b. Low per capita GDP growth and low population growth. c. Low per capital GDP growth and high savings rate. d. Low human capital investment.