If marginal costs rises above average costs, average costs must
a. Be increasing
b. Be decreasing
c. Stay constant
d. None of the above
a
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In monopolistic competition, there is inefficiency because price is greater than marginal cost. What brings about this inefficiency?
A) high concentration, as indicated by the large concentration ratio B) product differentiation C) freedom of entry and exit D) marginal cost rises as more output is produced E) the fact there are many firms in the market
The international adjustment mechanism for flexible exchange rates is the same as for managed float regimes
Indicate whether the statement is true or false
An important explanation for the current account deficit and capital account surplus in the United States is that
a. we buy fewer goods from foreigners than they buy from us, and foreigners find the United States an attractive place to invest. b. we buy more goods from foreigners than they buy from us, and foreigners find the United States an attractive place to invest. c. we buy fewer goods from foreigners than they buy from us, and Americans find foreign countries an attractive place to invest. d. we buy more goods from foreigners than they buy from us, and Americans find foreign countries an attractive place to invest.
Which of the following might explain a decrease in national saving when the tax rate on savings is reduced?
a. its substitution effect on saving and its effect on the government budget b. its substitution effect on saving but not its effect on the government budget c. its effect on the government budget but not its substitution effect on saving d. neither its substitution effect on saving nor its effect on the government budget