A firm experiencing economic losses could be earning accounting profits:
a. If implicit costs are greater than zero.
b. If implicit costs are equal to zero
c. If implicit costs are less than zero.
d. In none of the above scenarios.
a
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Which set of characteristics below best describes the basic features of monopolistic competition?
A. easy entry, few firms, and standardized products B. easy entry, many firms, and standardized products C. easy entry, many firms, and differentiated products D. barriers to entry, few firms, and differentiated products
Potential GDP
A) might either increase or decrease as the price level increases, depending on whether aggregate demand increases or decreases. B) decreases as the price level increases because people demand fewer goods and services. C) is independent of the price level. D) increases as the price level increases because firms supply more goods and services. E) never changes.
Which of these variables remains exogenous throughout Chapter 3?
A) the interest rate B) investment C) price level D) all of the above
If both prices decreases by 50%,
A) budget constraint will be unchanged. B) slope of the budget constraint will increase. C) slope of the budget constraint will decrease. D) budget constraint will shift outward in a parallel fashion.