According to the excess capacity theorem, if every firm under monopolistic competition expanded its output,
A. cost per unit of output would rise.
B. social benefits would increase.
C. cost per unit of output would decrease.
D. MC and AC would remain unchanged.
Answer: C
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The table below shows data for the U.S
Nominal Interest Rate Inflation Rate 2013 5.25 4 2014 5 2 2015 4.5 4.3 Between 2014 and 2015 the real interest rate ________ and caused a ________ the demand for loanable funds curve. A) increased; rightward shift B) decreased; movement down along C) increased; movement up along D) decreased; leftward shift
The social and economic environment plays a secondary role when compared to the importance of land, labor, capital, and entrepreneurship
Indicate whether the statement is true or false
In describing the economic setting in the real goods market, which of the following economic measures is the most helpful?
a. Current GDP Price Index b. Current GDP level c. Current capacity utilization rate d. Current real exchange rate e. Current nominal exchange rate
Technological __________ in American agriculture has __________ other types of employment
A) improvement; drawn labor away from B) improvement; released labor to go to C) stagnation; drawn labor away from D) stagnation; released labor to go to