Which of the following is FALSE about a comparison between a perfectly competitive firm and a monopolistically competitive firm?
A. In the long run, the perfectly competitive firm will produce at the minimum of the average total cost curve, while the monopolistically competitive firm will produce to the left of the minimum of the average total cost curve.
B. Both the perfectly competitive and monopolistically competitive firm will earn economic profits equal to zero in the long-run.
C. A perfectly competitive firm has a horizontal demand curve, while a monopolistically competitive firm has a downward sloping demand curve.
D. In the short run, a perfectly competitive firm will earn zero economic profits, while a monopolistically competitive firm will earn positive economic profits.
Answer: D
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Describe one important criticism of Rostow's stages of economic growth theory
What will be an ideal response?
The period of growth in real GDP between the trough of the business cycle and the next peak is called the:
a. recessionary phase. b. recovery phase. c. contractionary phase. d. cyclical phase.
Counting involuntary part-time workers as unemployed would
A) raise the full employment rate. B) not change the actual unemployment rate. C) raise the natural unemployment rate. D) raise the measured unemployment rate. E) lower the measured unemployment rate.
The table below shows the number of umbrellas and bushels of corn produced in the United Kingdom and the rest of the world per labor hour. If the United Kingdom and the rest of the world begin to trade with each other, the international price of corn will lie between ________ and ProductivityIn the United KingdomIn the Rest of the WorldUmbrellas per labor hour0.251.00Bushels of corn per labor hour0.500.67
A. 2/3 of an umbrella per bushel of corn; 3/2 umbrellas per bushel of corn. B. 1/2 of an umbrella per bushel of corn; 3/2 umbrellas per bushel of corn. C. 2/3 of an umbrella per bushel of corn; three umbrellas per bushel of corn. D. 3/2 umbrellas per bushel of corn; three umbrellas per bushel of corn.