In the short run, monopolistically competitive firms will maximize profits by:
A. playing strategic games like oligopolists.
B. acting like monopolists.
C. acting like perfectly competitive firms.
D. None of these statements is true.
Answer: B
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Indicate whether the statement is true or false
The idea of interchangeable parts, which was an important aspect of the American System of Manufacturing, is attributed by Hughes and Cain (2011) to
(a) Henry Ford, who used it in the production of automobiles. (b) Adam Smith, who suggested it in his book The Wealth of Nations. (c) Thomas Jefferson, who used it in his "nailery" on his plantation. (d) Eli Whitney, who used it in the production of guns.
Apply the concept of tax smoothing to the debate over tax-based versus spending-based fiscal stimulus
What will be an ideal response?
An important assumption that is made when constructing a supply schedule is
a. only price and quantity matter in determining supply. b. firms always want to sell a certain amount of a product. c. supply is too important to be left to the marketplace. d. all other determinants of supply are held constant. e. demand has a positive slope.