The assumption that "other things are constant" is also known as the
A) ceteris paribus assumption.
B) rational self-interest assumption.
C) distinguishing characteristic of economics as a science.
D) relationships assumption.
A
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Which of the following statements is FALSE?
A) A perfectly competitive market produces more output and charges a lower price than a monopoly. B) A perfectly competitive firm produces where MR = MC but a monopoly produces where MR > MC. C) In a perfectly competitive market, the price is equal to the marginal cost, but in a market with a single-price monopoly, price exceeds marginal cost. D) The consumer surplus is smaller for a market with a monopoly than for a perfectly competitive market. E) In the long run, a monopoly can earn a larger economic profit than can a perfectly competitive firm.
Suppose that when NBC produces 1 new drama series in a season it gives up the chance to produce 3 new reality shows. This means that
A) the opportunity cost of a new drama series is 1/3 of a new reality show. B) the opportunity cost of a 1 new reality show is 1/3 of a new drama series. C) NBC has a comparative advantage in producing new drama series. D) NBC has a comparative advantage in producing new reality shows.
When the market for gasoline in Motorland is in equilibrium, the deadweight loss is
A) $37,500 per month. B) $150,000 per month. C) $75,000 per month. D) zero.
A market demand curve reflects the
A) marginal social benefits of consuming a product. B) sum of private and social benefits of consuming a product. C) marginal private benefits of consuming a product. D) external benefits of consuming a product.