In the long run, a perfectly competitive market produces at ________, whereas the monopolistic competitive firm does not
A) the output at which the lowest average total cost of production is reached
B) an output level at which positive economic profits exist
C) zero economic profits
D) the point at which MR = MC=ATC
A
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When the principle of comparative advantage is used to guide trade, then a country specializes in producing only
A) goods with the highest opportunity cost. B) goods with the lowest opportunity costs. C) goods for which production takes fewer worker-hour than another country. D) goods for which production costs are more than average total costs.
An example of a positive externality is
a. pollution because it affects people not directly involved with producing it b. a homeowner's maintenance of a beautiful lawn because this creates a benefit for neighbors c. creating a monopoly d. driving a car that emits pollution e. cigarette smoking because this imposes an indirect cost on people around the smoker
Explain why GDP was never intended to be a measure of social well being
Economic sanctions
A) usually work to create policy change in the targeted country. B) are more likely to work if the international community supports them. C) are more likely to work if military force is not used. D) never work to create policy change in the targeted country.