In a long-run monopolistically competitive equilibrium
A) P = ATC, and ATC is not at its minimum value.
B) P = ATC, and ATC is at its minimum value.
C) P > ATC, and ATC is at its minimum value.
D) P > ATC, and ATC is not at its minimum value.
A
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In the above figure, technological progress that increases the expected profit will
A) shift the demand for loanable funds curve leftward. B) shift the demand for loanable funds curve rightward. C) have no effect on the demand for loanable funds curve. D) make the demand for loanable funds curve become horizontal.
A depreciation of the U.S. dollar will encourage, other things the same ________
A) the purchase of foreign goods by foreign economic agents B) the purchase of foreign goods by U.S. economic agents C) the purchase of U.S. assets by foreign economic agents D) the purchase of foreign assets by U.S. economic agents
Nonexcludability is a matter of degree. As the cost of excluding individuals rises, _____
a. the marginal cost of provision increase b. the marginal cost of provision decreases c. the probability of free riding declines d. the probability of free riding increases
Suppose the market clearing price is $20 and the price ceiling is $15. The price that prevails in the market will be
A) $20. B) $15. C) less than $15. D) $0.