Refer to Figure 26.3 for a monopolistically competitive firm. The output level that is allocatively efficient for this firm is
A. Q1.
B. Q2.
C. Q3.
D. Zero. The firm should shut down because it is not earning an economic profit.
Answer: B
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The circular flow is used to make the point that:
A. rising prices never occur during times of unemployment. B. unemployment only occurs during a recession. C. production generates income. D. households purchase factors of production from firms.
What are the problems with government actions in DVC?
What will be an ideal response?
Economists use theories to: a. abstract from the complexities of the world. b. understand economic behavior
c. explain and help predict human behavior. d. do all of the above.
An investment has grown from $100.00 to $130.00 or by 30% over four years. What annual increase gives a 30% increase over four years?
A. 7.24% B. 6.30% C. 6.78% D. 7.50%