A firm in a monopolistically competitive market makes no economic profit in the long run because
a. long-run marginal cost will be too high to make any economic profit.
b. long-run price will be equal to long run marginal cost.
c. long-run marginal cost will be equal to long run marginal revenue.
d. long-run price will be equal to long run average cost.
d
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Comparative advantage occurs when a person or a country can produce a good or service at a lower ____ than others
a. fixed cost b. variable cost c. opportunity cost d. total cost
A level of insurance is said to be actuarially fair when in which of the following situations?
a. Premiums that someone pays are less than the amount that an average person in that risk group would collect in insurance payments. b. Everyone in a risk group pays the same amount regardless of insurance payments collected. c. Premiums that someone pays are equal to the amount that an average person in that risk group would collect in insurance payments. d. Everyone in a risk group pays more than the average person in that risk group would collect in insurance payments.
Which of the following is not a characteristic of indifference curves?
A) Indifference curves cannot intersect. B) The closer to the origin, the greater the utility level. C) Indifference curves are usually bowed in, or convex. D) The slope of an indifference curve is negative.
For an economy as a whole, income must exceed expenditure
a. True b. False Indicate whether the statement is true or false