In the long run, the monopolistically competitive firm's demand curve will
A) intersect the ATC at its minimum point.
B) intersect the ATC curve somewhere past the minimum point.
C) become tangent to the ATC curve at its minimum point.
D) become tangent to the ATC curve somewhere to the left of its minimum point.
Answer: D
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In a competitive market the demand curve shows the ________ received by consumers and the supply curve shows the ________
A) economic surplus; opportunity cost B) utility; average cost. C) marginal benefit; marginal cost D) net benefit; net cost
Federal taxes increased in 1932, 1935 and 1937, and Social Security taxes were imposed in 1937 . Which group is credited for these tax increases during the Great Depression?
(a) Classical economists (b) Keynesian economists (c) Monetarists (d) Government officials and special interest groups
If an increase in the price of good X causes the demand curve for product Y to shift to the right, then X and Y are most likely to be which of the following?
a. Shoes and laces b. Tennis balls and tennis rackets c. Turkey and chicken d. Knives and forks e. DVD players and DVDs
Short-run aggregate supply: a. is a fixed volume of output
b. reflects how much RGDP suppliers are willing and able to produce at different price levels. c. shifts only when the LRAS shifts. d. is not affected at all by the price level.