A monopolistically competitive firm maximizes profits in the short run and long run at an output level where marginal revenue equals marginal costs.
Answer the following statement true (T) or false (F)
True
To maximize profits, a firm in monopolistic competition will choose an output level where marginal revenue equals marginal cost. In the short run, the price can be above average total cost and the firm earns an economic profit. In the long run, competition will force price down to minimum average total cost. In both cases, however, the choice of profit-maximizing output is still where marginal revenue equals marginal cost.
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An externality exists when
A) goods are sold in specific geographic locations. B) some of the benefits or costs associated with a good are borne by third parties. C) the government taxes a good. D) the government subsidizes a good.
The government of an economy must borrow money from the loanable funds market if the value of:
a. government expenditures is lower than the value of net taxes. b. government expenditures is higher than the value of net taxes. c. consumption expenditures is lower than the value of net taxes. d. investment expenditures is lower than the value of savings.
The share of college degrees earned by women was ____ in 2013 compared to ____ in 1961
a. 50 percent; 50 percent b. 47 percent; 30 percent c. 57 percent; 39 percent d. 51 percent; 48 percent
A general definition of the "transmission mechanism" is: the routes or channels that ripple effects created in the
A) market for goods and the services travel to affect the money market. B) money market travel to affect the market for goods and services. C) labor market travel to affect the market for goods and services. D) market for goods and services travel to affect the labor market. E) none of the above