A monopolistic competitor is like a monopolist in the short run in that when economic profits are
A) equal to zero, price equals marginal cost.
B) equal to zero, price below marginal cost.
C) greater than zero, changes in output are due to changes to plants by existing firms and there is no entry.
D) greater than zero, price exceeds marginal cost.
D
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The production possibilities frontier in the one-period model is a
A) behavioral relationship between consumption and leisure. B) behavioral relationship between consumption and government spending. C) technological relationship between consumption and leisure. D) technological relationship between consumption and government spending.
After graduating from college, Jim had three choices, listed in order of preference: (1) Move to Florida from Philadelphia, (2) work in a car dealership in Philadelphia, or (3) play soccer for a minor league in Philadelphia. His opportunity cost of moving to Florida includes
a. the benefits he could have received from playing soccer b. the income he could have earned at the car dealership c. both a and b d. cannot be determined from the given information
Economists are particularly adept at understanding that people respond to
a. laws. b. incentives. c. punishments more than rewards. d. rewards more than punishments.
Since 1970s, the share of income going to the poorest 20 percent of U.S. households has decreased, while the share of income going to the richest 20 percent of U.S. households has increased
Indicate whether the statement is true or false