Refer to the information provided in Figure 6.2 below to answer the question(s) that follow.
Figure 6.2Refer to Figure 6.2. Assume Mr. Lingle is on budget constraint AC. If the price of a beer is $4, Mr. Lingle?s monthly income is
A. $10.
B. $40.
C. $160.
D. $200.
Answer: C
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A firm in monopolistic competition that is maximizing profit ________
A. always makes a positive economic profit in the short run B. never needs to shut down because its price always exceeds minimum average variable cost C. might, in the short run, sell at a price that is less than average total cost D. shuts down temporarily if it incurs a loss equal to total variable cost
Specialization and trade allow an economy to expand its:
a. production possibilities. b. consumption possibilities. c. technological advantage. d. absolute advantage.
Which of the following occurs when goods in a market are being produced and sold at the lowest possible average cost?
a. Productive efficiency b. Monopolistic competition c. Allocative efficiency d. Perfect competition
The ability to produce a product at a lower resource cost than another nation can produce the same product is called comparative advantage
Indicate whether the statement is true or false