Under which market structure is a firm's MR curve horizontal?
A. Oligopoly
B. Monopolistic Competition
C. Perfect Competition
D. Monopoly
Answer: C
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If the supply of labor to a monopsonist is everywhere unit elastic, then the wage will equal
A) the marginal expenditure. B) one-half of the marginal expenditure. C) the marginal revenue product of labor. D) one.
Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
An increase in the market share of one oligopolist will not affect the market share of the other firms in the industry.
Answer the following statement true (T) or false (F)
Refer to Figure 34.1. Suppose the production possibilities curve PP2 represents the goods and services produced in the U.S. economy. If the current welfare system discourages people from seeking work, and laws change so that more people receive welfare benefits, the most likely result would be
A. No change from PP2. B. A shift from PP2 to PP1. C. A shift from PP2 to PP3. D. A movement from point C to point PP2.