Some economists argue that monopolistically competitive markets are inefficient because:
A. the firms earn economic profits in the long run.
B. the firms' marginal costs and marginal revenues are not always equal.
C. firms do not produce the output rate that would minimize their average total cost.
D. barriers to entry are high.
Answer: C
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The table above gives data for the nation of Mosh. The amount of autonomous expenditure is
A) $1.5 trillion. B) $4 trillion. C) $9.0 trillion. D) $4.5 trillion. E) not shown in this table.
In the table above, the deadweight loss is zero when ________ umbrellas are produced and sold
A) 20 B) 40 C) 60 D) 80
A farmer lives on a flat plain next to a river. In addition to the farm, which is worth $F, the farmer owns financial assets worth $A. The river bursts its banks and floods the plain with probability P, destroying the farm
If the farmer is risk averse, then the willingness to pay for flood insurance unambiguously falls when A) F is higher, and A is lower. B) P is lower, and F is higher. C) F & A are higher. D) P is lower, and A is lower. E) A is higher, and F is lower.
In a winner-take-all labor market,
a. anyone who is hired at any wage is a winner b. any firm that can hire a worker is a winner c. a few key people critical to the overall success of the enterprise are rewarded with substantial pay d. the person most critical to the overall success of an enterprise is rewarded with substantial pay, and everyone else is paid the median wage e. only one worker is paid