Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point A to Point E, the opportunity cost of motorcycles, measured in terms of hybrid cars
A. remains constant.
B. decreases.
C. initially increases, then decreases.
D. increases.
Answer: D
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If the price of an existing bond increases, the current yield increases.
Answer the following statement true (T) or false (F)
Assume the firms in a monopolistically competitive industry initially are earning positive economic profits. Which of the following will not occur over? time?
A) The firms' economic profits will be reduced.
B) New firms will enter.
C) Demand for the existing firms' output will become more inelastic.
D) The number of substitutes available in the industry will increase.
The 10-year protection period from generic competition for drug manufacturers is a form of
A) copyright. B) trademark. C) hallmark. D) patent.
The Average Total Cost curve will be cut by the Marginal Cost curve from below as long as
A. average costs are decreasing. B. marginal costs eventually increase. C. fixed costs are rising. D. marginal costs continually decrease.