The firm in the figure above is in monopolistic competition. The firm has
A) no excess capacity.
B) excess capacity of 10 units.
C) excess capacity of 20 units.
D) excess capacity of 30 units.
C
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Which of the following is NOT a characteristic that makes information useful?
a. It is reliable b. It is timely. c. It is inexpensive. d. It is relevant.a
Which of the following statements correctly highlights the difference between microeconomics and macroeconomics?
A) Microeconomics is descriptive, whereas macroeconomics is advisory. B) Microeconomics primarily deals with positive analysis, whereas macroeconomics primarily deals with normative analysis. C) Microeconomics deals with a small part of the economy, whereas macroeconomics deals with aggregate economic performance. D) Microeconomics describes what economic agents actually do, whereas macroeconomics describes what economic agents ought to do.
Suppose the production of a good results in negative externalities. If society produces the output consistent with the intersection of the demand curve and the marginal private cost curve, then
A. the socially optimal level of output will be produced. B. society will incur a net social cost. C. society will want more output produced, and producers will be willing to satisfy this desire at a price that society deems acceptable. D. all of the above E. There is not enough information to answer this question.
Explain some of the steps that a government would wish to adopt in an inflationary environment.
What will be an ideal response?