An implication of the downward slope of the demand curve for a monopolistic competitive firm is that
A) its marginal revenue curve slopes upward.
B) its marginal revenue curve and its demand curve are identical (same) line.
C) its marginal revenue curve slopes downward but lies above the demand curve.
D) its marginal revenue curve slopes downward but lies below the demand curve.
D
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Most economists think changes in which type of unemployment affects inflation?
A) frictional unemployment B) cyclical unemployment C) structural unemployment D) natural rate of unemployment
Which of the following formulas is not correct?
a. ATC = AVC + (TFC/Q) b. TVC = TC/Q c. TC = TFC + TVC d. AFC = TFC/Q e. TVC = AVC ? Q
Suppose you are planning to sell your house. You value your house at $200,000. If you do not hire a realtor, you will be able to sell your house to a buyer whose reservation price is $220,000. If you hire a realtor, you will be able to sell your house to a buyer whose reservation price is $250,000. Assume that the realtor's opportunity cost of negotiating the sale is $5,000. In this case, how much additional economic surplus is generated by using a realtor to sell your house?
A. $25,000. B. None, because you value the house at $200,000 no matter who buys it. C. $200,000. D. $250,000.
Studies in the 1980s and early 1990s showed that, in general, greater central bank independence
A) was associated with lower average inflation. B) was associated with lower average inflation and higher average real GDP growth. C) was associated with lower average inflation and higher unemployment. D) was associated with higher average inflation and higher average real GDP growth