This monopolistic competitor is in the
A. short run making a profit.
B. short run taking a loss.
C. long run making a profit.
D. long run taking a loss.
A. short run making a profit.
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Cleantown and Grimyville are identical except for the inferior air quality in Grimyville. All potential residents have identical tastes. Apartments in Cleantown rent for $400 per month. The cost of breathing Grimyville air is $75 per month. The quantity of apartments in each town is fixed.
(i) Explain why an apartment in Grimyville must rent for $325 per month. (ii) Consider the social gain created by Grimyville apartments. How is this social gain divided between the residents and the landlords? (iii) Suppose that the air in Grimyville is brought up to Cleantown standards. Who benefits from the cleaner air?
Marginal utility is
a. the difference in price between one store and another. b. the difference in value between "some" of a thing and "none" of a thing. c. the difference between any two successive total utility figures. d. acquired only with the first few units of a good or service. e. utility that is barely satisfactory.
For most less-developed countries, the proven technologies of the high-income countries are readily available. Why hasn't this always led to economic growth for these low-income countries?
Refer to the above graph of the representative firm in monopolistic competition. Marginal revenue and marginal cost intersect at point:
A. a. B. b. C. c. D. d.