For a perfectly competitive firm, the region of the marginal cost curve that is above its average variable cost curve is identical to the firm's _____
a. demand curve
b. supply curve
c. average total cost curve
d. average variable cost curve
b
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Suppose you are given the following demand data for a product.PriceQuantity Demanded$1030940850760670Using the regular percentage change formula, what is the price elasticity of demand when price increases from $6 to $7?
A. -0.525 B. -1 C. -0.856 D. -1.166
The GDP per capita is the most practical way to
A. Measure how much income households receive. B. Make international comparisons of the standard of living. C. Measure how much output can be consumed on a sustainable basis. D. Analyze the growth rate of the economy through time.
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.
Related to the Economics in Practice on p. 525: If the estate in the Chekhov play Uncle Vanya is earning 2 percent, the interest rate in suitable securities is 5 percent, and the estate is a better risk than the securities,
A. the estate will not sell because the return is lower. B. the buyer would have no preference between the two investments. C. the securities will not sell because the risk is higher. D. more information is needed to determine which is the better investment.