In monopolistic competition, the point of tangency between the demand curve and the ATC curve cannot be at the lowest level of average cost because the demand curve is ______.
a. downward sloping
b. upward sloping
c. horizontal
d. vertical
a. downward sloping
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Use the figure below to answer the following question.
The diagram shows three supply curves for wheat. Which of the following would cause the supply of wheat to shift from S1 to S3?
A. a decrease in the price of wheat B. an increase in the cost of maintaining the equipment used in wheat farming C. an increase in the number of acres of farmland allocated to wheat D. a decrease in the cost of maintaining the equipment used in wheat farming
Describe the relationship between the Federal Reserve and the legislative and executive branches of the U.S. government
What will be an ideal response?
The Great Recession began in ________ and ended in ________
A) December 2007; June 2009 B) December 2007; December 2011 C) October 2008; June 2009 D) October 2008; December 2011
If a natural disaster were to cause a negative long-run supply shock to the economy, once the economy adjusts, the new equilibrium will be at a:
A. higher price level and lower level of output. B. lower price level and higher level of output. C. higher price level and higher level of output. D. lower price level and lower level of output.