In the above figure of a monopolistically competitive firm, the marginal cost of the last unit produced is equal to ________ and is ________ marginal revenue
A) P2; greater than
B) P3; greater than
C) P1; greater than
D) P1; equal to
D
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You have the following information on personal consumption expenditures (C) and disposable income (Yd):
Year C Yd 1 300 400 2 500 700 a. Compute the marginal propensity to consume. b. Compute the amount of savings for years 1 and 2. c. Compute the marginal propensity to save.
A Nash equilibrium is the:
A. output level that minimizes average total cost. B. strategy that maximizes the outcome of all the players. C. payoff that maximizes the joint payoff. D. set of strategies such that no player can improve his or her position by changing his or her own action.
Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; potential C. higher; higher D. lower; higher
If expected earnings of a company are revised upward and all else is equal, the price of a stock will
A. rise. B. adjust to reflect a lower ratio of price to (current) earnings. C. fall. D. remain unchanged.