Long-run equilibrium for a monopolistic competitor is characterized by
A) a price exceeding marginal cost.
B) marginal cost pricing.
C) economic profits.
D) too few firms in the industry.
A
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If a negative externality exists in the production of paper and paper is sold in a perfectly competitive market, at the equilibrium output:
A. additional net gains to society are not possible from either increasing or decreasing the output of paper. B. the marginal social benefit of paper equals its marginal social cost. C. additional net gains to society are possible by increasing the output of paper. D. additional net gains to society are possible by reducing the output of paper.
Spending VCU4 on real-world goods and services causes the nation's:
a. Demand for real goods and services to rise and monetary base to rise. b. Demand for real goods and services to remain the same and M2 money supply to rise. c. Demand for real goods and services to remain the same and M2 money multiplier to rise. d. Demand for real goods and services to rise and monetary base to remain the same.
A firm may pay efficiency wages in an attempt to
a. entice workers to work the night shift rather than the day shift. b. improve productivity by reducing turnover. c. reduce costs by attracting the least-skilled workers to apply for job vacancies. d. All of the above are correct.
A country's nonofficial financial account balance equals its net foreign investment.
Answer the following statement true (T) or false (F)