If the eyeglass industry is monopolistically competitive, then in the long-run:
a. the price of eyeglasses will equal marginal revenue.
b. the price of eyeglasses will exceed marginal cost.
c. firms can earn economic profits
d. firms are price takers.
b
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Consider a hypothetical economy, whose GDP was $10,000 . consumption equaled $9,800, investment equaled $125, goods exported equaled $255, and goods imported equaled $500, in 2010 . Calculate the government spending in this economy during the year
a. $120 b. $380 c. $245 d. $200 e. $320
Once active discrimination ends, it:
A. is quickly forgotten, and efficiency is reached. B. no longer affects people or markets. C. can have long-lasting effects on people and markets. D. None of these is true.
Consider the statement: "When the British government tripled university fees for foreign students in Great Britain, about one-half of them left to study in other countries." The implied price elasticity of demand by foreigners for a British education is (in absolute value)
A. less than 1. B. equal to 1. C. greater than 1.5. D. between 1.0 and 1.5.
Exhibit 10-4 Supply and demand curves for food servers
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If the equilibrium wage rate in Exhibit 10-4 increased, the cause could be that:
A. the wage increased. B. the marginal product of labor decreased. C. either the demand for labor increased or the supply of labor decreased. D. the price of the product produced by the labor decreased.