To maximize its profit, a monopolistically competitive firm chooses its level of output by looking for the level of output at which
a. price equals marginal cost.
b. marginal revenue equals marginal cost.
c. average total cost is minimized.
d. All of the above are correct.
b
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If a monopoly's demand curve shifts to the right, the
A) monopoly will charge a higher price. B) monopoly will charge a lower price. C) monopoly will sell more. D) monopoly's decision cannot be determined.
Which of the following most clearly illustrates the concept of derived demand?
a. An increase in the price of steak causes the demand for poultry to increase. b. An increase in the demand for new houses leads to an increase in the demand for construction workers. c. An increase in consumer income leads to an increase in the demand for services provided by the government. d. An increase in the demand for new cars causes the demand for used automobiles to rise.
U.S. poverty is more about ________ deprivation than ________ deprivation.
A. insignificant; relative B. absolute; significant C. relative; absolute D. meaningful; mild
The estimated demand for a good is 
= 25 - 5P + 0.32M + 12PRwhere Q is the quantity demanded of the good, P is the price of the good, M is income, and PR is the price of related good R. This good and the related good R are
A. complements since the coefficient on M is positive. B. substitutes since the coefficient on M is positive. C. substitutes since the coefficient on PR is positive. D. complements since the coefficient on PR is positive.