The goods or services that firms in an oligopoly sell:
A. are not close substitutes.
B. are close substitutes.
C. are standardized.
D. are either standardized or close substitutes.
D. are either standardized or close substitutes.
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Which of the following variables is not needed to determine the break-even quantity?
a. Marginal costs b. Fixed Costs c. Selling Price d. Average Costs
When expectations of inflation are revised upward, the short-run Phillips curve: a. shifts rightward. b. becomes steeper. c. shifts leftward
d. becomes flatter.
Which one of the following factors will most likely cause an increase in aggregate demand?
a. an increase in the expected inflation rate b. an increase in the real interest rate c. a decrease in net exports due to falling incomes abroad d. a technological development that decreases the cost of producing computer chips
When a profit-maximizing firm in a monopolistically competitive market charges a price higher than marginal cost,
a. the firm must be earning a positive economic profit. b. the firm may be incurring economic losses c. there is a deadweight loss to society, but it is exactly offset by the benefit of excess capacity. d. new firms will enter the market in the long run.