If total production is greater than total expenditures,
A) there will be an increase in saving.
B) there will be an increase in inventories.
C) firms will then increase production.
D) firms will then increase prices.
B
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A competitive market is always efficient
Indicate whether the statement is true or false
An increase in quantity demanded is caused by
A) an increase in income. B) a decrease in the price of the good. C) a decrease in the price of a complement. D) a change in expectations about price in the future.
In long-run monopolistic competition,
a. economic profit is zero b. P = MC = ATC c. P = ATC at the minimum point on the ATC d. normal profit is zero e. the demand curve is tangent to the MC curve
Which of the following statements is correct?
A) Utility and usefulness are synonymous. B) The marginal utility derived from successive units of a product tends to be similar for all consumers. C) Because utility is not measurable, the utility-maximizing rule provides no useful insights as to consumer behavior. D) A product may yield utility, but not be functionally useful.