One way to view the cost structure of monopolistic competition is to say that the cost of product differentiation is equal to
A. the sum of marginal cost and minimum average cost.
B. the difference between marginal revenue and marginal cost.
C. the sum of price and marginal cost.
D. the difference between the cost of production for a monopolistically competitive firm in an open market and the minimum average total cost.
Answer: D
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The market pricing system corrects an excess supply by.
a. raising the product price and increasing producer profits. b. lowering the product price and decreasing producer profits. c. raising the product price and decreasing producer profits. d. lowering the product price and increasing producer profits.
Economic discrimination occurs when equivalent factors of production receive different payments for equal contributions to output.
Answer the following statement true (T) or false (F)
The price of labor per unit times the amount of labor used is called
A. labor input. B. labor cost. C. marginal labor. D. marginal cost.
Refer to the information provided in Figure 6.6 below to answer the question(s) that follow.
Figure 6.6Refer to Figure 6.6. Bill's budget constraint is BD. Bill's income is $600, the price of a bell pepper is $1, and the price of a bag of black beans is $2. At point D Bill is buying ________ bell peppers and ________ bags of black beans.
A. 600; 0 B. 300; 150 C. 600; 300 D. 0; 300