If the quantity of a good supplied is not very sensitive to the price of the good, economists say the supply of the good is relatively
a. inelastic.
b. elastic.
c. robust.
d. inverse.
A
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In the long run, a representative firm in a monopolistically competitive industry will end up
A. producing a level of output at which marginal cost and price are equal. B. having an elasticity of demand that will be less than it was in the short run. C. earning a normal profit, but not an economic profit. D. having a larger number of competitors than it will in the short run.
The amount of money in the United States is determined by:
A. the combined behavior of commercial banks and the public. B. the public C. the combined behavior of commercial banks and the public, as well as actions of the Federal Reserve. D. the Federal Reserve.
Education generates external benefits. When these external benefits are not considered, the market will produce
A. more than the efficient level of education. B. an efficient level of education. C. zero units of education. D. less than the efficient level of education.
Related to the Economics in Practice on page 267: When trying to determine the price to charge for a new product, firms sometimes charge one price in one market and another price in a second market. Firms call this approach
A. using a focus group. B. test marketing. C. price rationing. D. benchmark pricing.