Monopolistically competitive firms must produce where there is an optimal allocation of resources because the firms do not present significant barriers to entry to potential competitors.
Answer the following statement true (T) or false (F)
False
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How are money cost and opportunity cost related to each other?
A. If markets function well, they are closely related. B. They are always identical in any economic system. C. Opportunity cost must always exceed money cost. D. Money cost is greater than or equal to opportunity cost. E. In a market economy, they must be equal to each other.
Refer to Figure 2-9. Carlos Vanya grows tomatoes and strawberries on his land. His land is equally suited for growing either fruit. Which of the graphs in Figure 2-3 represents his production possibilities frontier?
A) Graph A B) Graph B C) Graph C D) either Graph A or Graph B E) either Graph B or Graph C
Games that don't have a dominant strategy:
A. do not have stable equilibrium outcomes. B. may have stable equilibrium outcomes. C. always have stable equilibrium outcomes. D. don't exist; all games have at least one dominant strategy.
The minimum legal price that can be charged in a market is:
A. full economic price. B. a price floor. C. a price ceiling. D. non-pecuniary price.