Under monopolistic competition, firms have prices ________ marginal cost and long-run profits that are ________ (net of fixed costs).
A. above; positive
B. above; close to zero
C. below; positive
D. below; close to zero
B. above; close to zero
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Savings that pay for capital investment can come from:
A. within a country. B. outside a country. C. domestic savings. D. All of these are true.
Let supply be given by P = 5Q and demand by P = 19 - 2Q. Suppose we now place a tax of 5 per unit of output on the seller. The new equilibrium quantity is:
A. 3 B. 7 C. 5 D. 2
Which of the following tendencies would explain why a waiter might give a $0.50 tip on a $40 meal back to the customer instead of pocketing it?
a. anchoring b. the endowment effect c. fairness d. the gambler’s fallacy
Nondefense government spending has been more or less flat going as far back as the
A. 1980s. B. 1940s. C. 1950s. D. 1970s.