This monopolistic competitor is in the
A. short run making a profit.
B. short run taking a loss.
C. long run making a profit.
D. long run taking a loss.
B. short run taking a loss.
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In the table above, if a unit of capital is $50 per day and an hour of labor is $15 per day, which method is economically efficient?
A) A B) B C) C D) D
If the inverse demand curve a monopoly faces is p = 100 - 2Q, and MC is constant at 16, then maximum profit
A) equals $336. B) equals $882. C) equals $1,218. D) cannot be determined solely from the information provided.
Suppose that quantity demand falls by 30% as a result of a 5% increase in price. The price elasticity of demand for this good is
a. inelastic and equal to 6. b. elastic and equal to 6. c. inelastic and equal to 0.17. d. elastic and equal to 0.17.
The "composite good" refers to
A. income not spent on good X in a two-dimensional graphical presentation. B. large purchases that cannot be incrementally divided. C. an abstraction requiring more than a three dimensional graph. D. the notion that consumer pleasure cannot be modeled graphically.