For a monopolistically competitive firm, price equals average revenue
Indicate whether the statement is true or false
TRUE
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An increase in each of the following factors would normally provide a subsequent increase in quantity demanded, except:
a. price of substitute goods b. level of competitor advertising c. consumer income level d. consumer desires for goods and services e. a and b
Which of the following is an example of a direct tax?
a. sales tax b. property tax c. gasoline tax d. income tax
Behavioral economics suggests that people face human limitations that prevent them from examining every possible choice available to them, with the implication that
A. the consumer optimum implied by utility theory is an inappropriate approach to deriving demand curves. B. the consumer optimum implied by utility theory is an appropriate approach to deriving demand curves. C. marginal utility is always negative. D. marginal utility is always equal to zero.
The situation where one person's demand for a good depends on the consumption of the good by others is called a
A) network externality. B) network internality. C) consumption externality. D) production externality.