Which of the following characteristics of the monopolistically competitive and the perfectly competitive market will cause the firm to earn zero profits in the long run?
A. no barriers to entry
B. many buyers
C. price taker
D. homogeneous product
Answer: A
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George is considering investing in a frozen yogurt store. If the store does well he will make $20,0000, but if the store does poorly he will make only $10,000. There is a 50 percent chance of each outcome
His utility of wealth schedule is in the above table. The expected utility of this investment is A) 115. B) 140. C) 165. D) 180.
Refer to Scenario 1-4. Using marginal analysis terminology, what is another economic term for the incremental cost of producing the last 500 cigars?
A) explicit cost B) operating cost C) marginal cost D) Any of the above terms are correct.
If a regulatory commission wishes to allow a firm to earn a normal rate of return, it should set price equal to: a. marginal revenue
b. marginal cost. c. average total cost. d. average variable cost.
If the price of inputs rises and personal income taxes rise:
a. Price index falls, and real GDP falls. b. Price index falls, and the change in real GDP is uncertain. c. The change in price index is uncertain, and real GDP rises. d. The change in price index is uncertain, and real GDP falls. e. Neither the price index nor real GDP changes.