Unlike firms in a perfectly competitive market, each firm in a monopolistically competitive market produces a quantity where price is:
a. equal to its marginal cost of production.
b. less than its marginal revenue
c. more than its marginal cost of production.
d. more than its average revenue.
b
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Refer to the scenario above. Which of the following is likely to happen if Rita confesses while Mike does not confess?
A) Both of them will be let free. B) Rita will be let free while Mike will be suspended. C) 10 points will be deducted from their respective scores. D) 10 points will be deducted from Mike's score while Rita will be suspended.
A negative supply shock often results in:
a) a leftward shift of the AD curve. b) an increase in the aggregate price level and a decrease in aggregate output. c) no change in the price level. d) a drop in the unemployment levels.
The demand for labor increases when the:
A. value of the marginal product of labor increases. B. real wage decreases. C. value of the marginal product of labor decreases. D. real wage increases.
The estimated demand for a good is 
= 25 - 5P + 0.32M + 12PRwhere Q is the quantity demanded of the good, P is the price of the good, M is income, and PR is the price of related good R. This good and the related good R are
A. complements since the coefficient on M is positive. B. substitutes since the coefficient on M is positive. C. substitutes since the coefficient on PR is positive. D. complements since the coefficient on PR is positive.