The financial situation at Starbucks in the late 2000s illustrates the fact that maintaining long-run profits in a monopolistically competitive market is
A. very difficult.
B. impossible.
C. almost always guaranteed.
D. fairly easy.
Answer: A. very difficult.
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Refer to the table above. If the rental price of machines is $140 per day, up to how many machines should the firm rent?
A) 2 B) 3 C) 4 D) 5
It is absolutely necessary for at least one trader to have money for barter exchange to take place
a. True b. False Indicate whether the statement is true or false
Because of a late night out with friends, Alyssa decided to sle ep in rather than attend her 7:50 a.m. economics class. According to economic analysis, her choice was
a. irrational, because economic analysis suggests you should always attend classes that you have already paid for. b. irrational, because oversleeping is not in Alyssa's self-interest. c. rational only if Alyssa has not missed any other classes during the current semester. d. rational if Alyssa values the additional sleep more highly than the extra benefit she expects to receive from attending the class.
Which of the following occurs when the spending on final goods and services exceeds full-employment GDP?
A. Unemployment. B. Recessionary gap. C. Inflationary gap. D. Inventory accumulation.