Suppose in the city of Blacksburg, music stores operate in a monopolistically competitive market. If the price of Blu-ray discs in Blacksburg is currently equal to $20 each and the average cost of Blu-ray discs is $15, in the long run we expect the price of Blu-ray discs to:
A. increase.
B. stay the same.
C. decrease, and the average cost of selling Blu-ray discs to increase.
D. decrease, and the average cost of selling Blu-ray discs to decrease.
Answer: C
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The figure above shows the demand for and supply of rental housing in Smallton. If a rent ceiling is set at $800, what is the rent?
A) $800 B) $600 C) $400 D) None of the above answers is correct.
Which of the following are reasons economists consider valid for trade protection?
I. Protection penalizes countries that have weak environmental standards. II. Protection limits dumping of low-wage jobs into the domestic economy. III. Protection prevents low-wage jobs in foreign countries from lowering wages in the United States. A) I and II B) II and III C) I, II, and III D) none of the above
Which of the following is the least likely to be investment?
A. a household buying a new house B. a household saving for retirement C. GM building a new factory D. a car dealer adding to its cars on hand
A U-shaped average total cost curve implies
A. First diminishing returns, and then increasing returns. B. A linear total cost curve. C. First marginal cost below average total cost, and then marginal cost above average total cost. D. That total costs are at a minimum at the minimum of the average cost curve.