Figure 11.4Figure 11.4 depicts demand and costs for a monopolistically competitive firm. In the long run we expect:
A. more firms to enter the market.
B. the firm's demand curve to shift to the left.
C. the firm's average cost of production to increase.
D. All of these
Answer: D
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The U.S. government spent $5 million during a particular year in providing food and shelter to earthquake victims in Japan. This is an example of a(n) ________
A) export to Japan B) transfer payment to Japan C) factor payment to Japan D) import from Japan
In the figure above, using the midpoint method, what is the price elasticity of demand when the price falls from $8 to $7?
A) 4.0 B) 5.0 C) 0.5 D) 0.4 E) 0.25
All of the following are true regarding the Economic Order Quantity model except which one?
A) It determines the cost-minimizing quantity managers should order to keep in inventory. B) It assumes demand is known with certainty. C) It assumes demand is spread evenly over a time period. D) It accounts for changes in interest rates.
Natalie can produce 6 shirts in a day, or cook three meals. Her opportunity cost of producing a shirt is 2 meals
Indicate whether the statement is true or false