In deciding which model of a car to buy, microeconomic theory maintains that consumers are concerned about the absolute price of a particular car, rather than its relative price
Indicate whether the statement is true or false
FALSE
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Excess demand in an unregulated market will cause the price of a product to fall
Indicate whether the statement is true or false
If perfectly competitive lawn care firms are making an economic profit, then
A) wages will be bid up until the economic profit are gone. B) the firms must be superior and will continue to make an economic profit. C) new firms will enter the industry. D) they are not equating marginal revenue to marginal cost. E) government regulation will be imposed to decrease their profit.
The marginal revenue curve of a monopolistically competitive firm will always lie:
a. below the firm's demand curve. b. parallel to the firm's demand curve. c. parallel to the firm's quantity axis. d. above the firm's demand curve.
China's one child policy
a. Caused the share of young people to rise b. Prematurely aged the Chinese labor force c. Lowered the saving rate d. all of the above e. none of the above