Firms in monopolistic competition have demand curves that are
A) horizontal.
B) vertical.
C) downward sloping.
D) upward sloping.
E) U-shaped.
C
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Aggregate supply is upward sloping in the
a. new classical model. b. classical model. c. monetarist model. d. real business cycle models. e. both a and c.
The current percentage of Americans over the age of 65 is
A. 18.2%. B. 19.0%. C. 13.0%. D. 10.5%.
The government sets up a lighthouse to prevent ships from crashing into rocks near the shore. The lighthouse is an example of a _____
a. merit good b. club good c. public good d. private good
Assume that all firms in this industry have identical cost curves, and that the market is perfectly competitive.
In the long run, the equilibrium price will be ________ per gallon, and each firm's profit-maximizing quantity will be ________ gallons per week.
A. $20; 400 B. $15; 300 C. $20; 4,000 D. $15; 6,000