Exhibit 10-3 A monopolistic competitive firm in the long run
To maximize long-run profits, the monopolistically competitive firm shown in Exhibit 10-3 will charge a price per unit of:
A. zero.
B. $10
C. $20.
D. $30.
Answer: D
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There is a strong link between changes in the money supply and inflation
A) in neither the short run nor the long run. B) in the short run, but not in the long run. C) in the long run, but not in the short run. D) in both the short run and the long run.
Refer to Figure 9.7. Because of the policy, consumer surplus fell by
A) $10. B) $20. C) $12,500. D) $25,000. E) $45,000.
If two parties to a loan contract agree that the lender should earn an 8 percent increase in purchasing power as a result of a loan and if the inflation rate is 5 percent, the nominal interest rate is _____
a. 13 percent b. 8 percent c. 5 percent d. 3 percent e. 1 percent
Total utility can be calculated as the
a. difference between all marginal utilities b. price paid for one good c. sum of all marginal utilities d. total expenditure on all units of the good the consumer buys e. difference between the marginal utilities of the first and last units