The marginal revenue curve of a monopolistically competitive firm will always lie:
A. below the firm's demand curve.
B. parallel to the firm's demand curve.
C. parallel to the firm's quantity axis.
D. above the firm's demand curve.
Answer: A
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The figure above shows a perfectly competitive firm. The firm is operating; that is, the firm has not shut down. The firm is
A) making an economic profit of $200. B) incurring a economic loss of $200. C) incurring an economic loss of $600. D) making zero economic profit.
Tee-shirt Integration Tee-shirt Titan produces a variety of lines of "ironic" designs that it sells nationwide. It also sells plain tee-shirts in a variety of colors to smaller local silkscreen shops. It noticed that one of these, Shasta Shirtwerkz, has
experienced substantial growth and profitability due to its even more clever designs. Should Tee-shirt Titan purchase Shasta Shirtwerkz as another line within their product offerings?
Most of the disagreement among economists involves normative debates
a. True b. False
The marginal rate of transformation is the
A. slope of the production possibility frontier. B. transformation of resources into a form that is useful to people. C. process of using resources to produce new capital. D. dollar value of the best forgone alternative.