For a profit-maximizing firm in a monopolistically competitive market, when price is equal to average total cost, price must lie above marginal cost
a. True
b. False
Indicate whether the statement is true or false
True
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GDP measured using current prices is called ________.
A. real GDP B. deflated GDP C. nominal GDP D. constant GDP
Do you believe that class size reductions will help student performance?
What will be an ideal response?
Figure 34-5
?
From the graph in Figure 34-5 (curves show output per unit of labor input), one can infer that
A. Japan has an absolute advantage in TVs and computers, but a comparative advantage only in TVs. B. Japan has only a comparative advantage in TVs. C. Japan has an absolute advantage in both TVs and computers, but a comparative advantage only in computers. D. China has a comparative advantage in computers.
In competitive markets, a surplus or shortage will:
A. Never exist because the markets are always at equilibrium B. Cause changes in the quantities demanded and supplied that tend to eliminate the surplus or shortage C. Cause shifts in the demand and supply curves that tend to eliminate the surplus or shortage D. Cause changes in the quantities demanded and supplied that tend to intensify the surplus or shortage