Monopolistic competition and perfect competition are similar in that each market structure is characterized by
A. advertising.
B. a horizontal demand curve.
C. the absence of long-run economic profits.
D. production at minimum average cost in the long run.
Answer: C
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On the graph above, an increase in government spending, with no change in taxes, is likely to move the economy from point 1 to point ________
A) 8 B) 6 C) 3 D) 5
In the absence of any government regulation on price, if a firm has no power to set price on its own, one can safely conclude
A) the demand curve for the firm's product is horizontal. B) there aren't many firms in the industry. C) the market is in long-run equilibrium. D) the firms in this industry are not profitable.
The short-run aggregate supply curve: a. Is a schedule showing the relationship between the price level and the quantity of real GDP supplied. b. Is typically upward sloping
c. reflects output prices changing relative to input prices. d. all of the above
Refer to the information provided in Figure 3.6 below to answer the question(s) that follow.
?Figure 3.6Refer to Figure 3.6. The number of DVDs Isabel rents per week increases from 4 to 7. This is caused by
A. a decrease in the price of popcorn, which is a complement to DVDs. B. a decrease in the rental price of DVDs. C. an increase in income if DVDs are a normal good. D. either A or B