In the short run, the profit-maximizing monopolistically competitive firm will produce the rate of output at which
A) P = MC.
B) MR = MC.
C) P = ATC.
D) MR = ATC.
Answer: B
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In economics
A) both resources and wants are limited. B) both resources and wants are unlimited. C) resources are limited but wants are unlimited. D) resources are unlimited but wants are limited.
One of the challenges for development economists working in health care is to figure out a way to:
A. give incentives to families to make better health care choices. B. force doctors to practice good medicine. C. decrease the frequency of preventative medicine, such as immunizing children. D. All of these statements are true.
Assume that an economy experiences both positive population growth and technological progress. A reduction in the saving rate will cause
A) no change in K/NA. B) a permanent reduction in the rate of growth of output per worker. C) a permanent reduction in the rate of growth of output. D) no change in Y/NA. E) none of the above
Which of the following formulas is correct? Percentage change in:
A. real income approximates percentage change in price level minus percentage change in nominal income. B. nominal income approximates percentage change in price level minus percentage change in real income. C. price level approximates percentage change in real income minus percentage change in nominal income. D. real income approximates percentage change in nominal income minus percentage change in price level.