Monopolistically competitive firms ________ because in long-run equilibrium price is ________ marginal cost.
A. prevent the efficient use of resources; greater than
B. use resources efficiently; greater than
C. use resources efficiently; equal to
D. prevent the efficient use of resources; less than
Answer: A
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Recent studies have shown increases in the minimum wage have significantly reduced employment of teenagers.
Answer the following statement true (T) or false (F)
Marginal rates of technical substitution (MRTS) represent
A) the optimum combinations of inputs. B) cost-minimizing combinations of inputs. C) the degree to which one input can replace another without output changing. D) All of the above
Treble damages are equal to ________ times the amount of damages suffered by the ________.
A) five; cartel firm B) five; winning plaintiff C) three; cartel firm D) three; winning plaintiff
Consider the following ratio: the average annual inflation rate/the average annual money growth rate. A country with a ratio less than one would have:
A. to have a high unemployment rate. B. an economy suffering from a recession. C. an average inflation rate less than the average rate of money growth. D. an average inflation rate greater than the average rate of money growth.