As firms enter a monopolistically competitive market in the long run:
A. price increases, the market quantity demanded increases, and the quantity supplied by an individual firm increases.
B. price decreases, the market quantity demanded increases, and the quantity supplied by an individual firm decreases.
C. price decreases, but firm profits increase as average costs decrease.
D. price increases and firm profits increase.
Answer: B
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If fixed costs are $960, variable costs are $1,440, and output is 12, then average total cost equals:
A. $ 80. B. $120. C. $200. D. $100.
According to this Application, the more unhappy unemployed individuals were
A) the more likely they were to remain unemployed. B) the longer they collected unemployment benefits. C) the more they congregated around others who were unemployed. D) the more aggressive they would be to try to find a job.
In the above figure, when the efficient quantity is produced the marginal social cost of the last magazine is
A) $1. B) $3. C) $5. D) some amount not given in the above three answers.
Which of the following is inconsistent with Robert Nozick's view of fairness as expressed in his book Anarchy, State, and Utopia?
A) Everything that is valuable must be owned by individuals and that the state must ensure that theft is prevented. B) The only legitimate way a person can acquire property is to buy it. C) The requirement that all people should have equal outcomes. D) None of the above answers is correct because all the answers express thoughts consistent with Nozick's view.