In assessing the difference between monopoly performance and that of perfect competition, the best approach is to
a. measure the output of the monopolist and the output of the perfectly competitive firm.
b. measure the output of the monopolist and the output of the perfectly competitive industry.
c. measure the output purchased by consumers from the monopolist and from the perfectly competitive firm.
d. calculate the marginal cost of the monopolist and of the perfectly competitive firm.
b
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When the AE line lies above the 45° line,
A) real GDP exceeds aggregate planned expenditure. B) there are unplanned increases in inventories. C) aggregate planned expenditure is less than real GDP. D) the price level is rising. E) there are unplanned decreases in inventories.
How are the domestic sellers and buyers of a good affected if a country starts importing the good?
What will be an ideal response?
A community in a Southeastern state passed a beautification ordinance (law) prohibiting the placement of indoor furniture outside of homes (i.e., no couches on the porch). The law represents a conflict between ____ and ____
a. the rich; the poor b. third parties; market participants c. victims; criminals d. public goods; private goods e. residents; visitors
Which of the following is a step that economists take in order to examine a real-world issue?
a. Determine the results that will occur if the market being considered is a controlled market b. Look at the real-world results to see the similarities they hold with the results of a free market c. Suggest remedies and policies to alter the results of a free-market d. Suggest remedies or policies to alter the real-world result e. Assume that the market transactions, in a real-world, is completely controlled by the government