In the long run, economic profit for a monopolistically competitive firm
a. is zero, due to the lack of barriers to entry
b. is zero, due to product differentiation
c. may be positive, due to strong barriers to entry
d. may be positive, due to product differentiation
e. may be positive, due to advertising and product promotion
A
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Define gross investment and net investment. Discuss the relationship between gross investment and net investment
What will be an ideal response?
If MUx / Px = MUY / PY, then _____
a. the consumer should purchase the same quantity of X and Y b. the consumer should purchase less of X c. the consumer is maximizing utility d. the consumer should purchase more of Y e. the consumer is minimizing utility
Suppose a person defects from Cuba (a country that generally disregards the use of markets) to the United States and asks to see a market in action. Where would you take her? Did you give her a complete showing of this market?
When a worker specializes in one task, he focuses on that one function in the production process, ignoring the whole system. This is likely to
A. increase the cross-training costs. B. result in functional myopia that reduces overall productivity. C. eliminate trade-offs since only one task is undertaken by each employee. D. lead to greater complementarity between one task and another.