Monopolistic competition differs from monopoly because in monopolistic competition
A) firms maximize profits.
B) firms set marginal revenue equal to marginal cost to maximize profit.
C) firms are free to enter and exit.
D) All of the above are differences between monopoly and monopolistically competitive firms.
C
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The aggregate demand effect from a rise in government spending is maximized
A) the lower the level of capital mobility. B) the higher the level of capital mobility. C) when the exchange rate floats freely. D) when the rise is matched by a decrease in the money supply.
Jim's Burgers produces 600 burgers per week. Each burger sells for $3 . Goody Candy orders 500 burgers for its upcoming office party from Jim's Burgers. Jim decided to accept the order for $1250 lump sum. What would be the marginal revenue per burger for this order?
a. $3 b. $2.50 c. $0.50 d. It cannot be determined with the information given
Education and training of workers would best be categorized as
A. physical capital. B. labor. C. human capital. D. land.
Which of the following statements about the Earned Income Tax Credit Program (EITC) program is FALSE?
A. It is the largest poverty reduction program in the U.S.. B. It provides rebates of Social Security taxes to low-income workers. C. On net the EITC discourages work by low- or moderate- income earners more than it rewards work. D. Recipients who receive benefit payments under Social Security are also eligible for SSI.