In the long run in monopolistic competition, a firm will not produce the output level that minimizes average cost because
a. that output level is less than the profit-maximizing one
b. at that output level, MC is greater than MR
c. at that output level, P is greater than MR
d. demand is horizontal
e. that would leave the firm with excess capacity
B
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According to monetarists,
a. businesses and households are the primary source of instability in the economy. b. the Federal Reserve causes instability in the economy primarily by allowing instability in the money demand that determines the level of economic activity. c. the government can stabilize the economy by interfering with the normal misadjustment mechanisms in the private sector. d. All of the above e. None of the above
In the above table, what is the marginal revenue product of the 1st worker?
A) $92 B) $70 C) $40 D) $8
Regardless of quantity in long-run equilibrium, the industry price cannot exceed the
a. long-run average cost of supplying that quantity. b. total variable cost of supplying that quantity. c. long-run total cost of supplying that quantity. d. minimum long-run marginal cost of supplying that quantity.
Refer to the given data. With a $1-per-unit tariff, the quantities sold by foreign and domestic producers respectively will be:
Answer the question on the basis of the following domestic supply and demand schedules for a product. Suppose that the world price of the product is $1.
A. 1 unit and 15 units.
B. 7 units and 4 units.
C. 11 units and 4 units.
D. indeterminate.