The monopolistic competition model assumes that:
A. allocative efficiency will be achieved.
B. productive efficiency will be achieved.
C. firms will engage in nonprice competition.
D. firms will realize economic profits in the long run.
Answer: C
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Refer to Figure 17-3. Panel D is appropriate when used to represent
A) the quantity of labor demanded by an input price taker. B) the quantity of labor supplied by someone working a fixed number of hours. C) the labor supply curve facing an input price taker. D) the highly-skilled labor market supply curve.
Assume a new technology is developed that increases the productivity of capital and creates additional economies of scale. How would this affect the firm's minimum efficient scale of operation. Illustrate this effect graphically
What will be an ideal response?
In what decade did the U.S. government first decide to intervene in the farm economy?
a. 1950s b. 1930s c. 1970s d. 1960s e. 1980s
Which of the following is not included in a nation's balance of payments?
a. International barter exchanges. b. International credits (loans). c. International shipping expenses. d. All the above are includedin the balance of payments.