The short-run equilibrium for a monopolistically competitive firm is at P = $28.47, ATC = $22.13, and MC = MR = $17.47. Which of the following is true?
A. Average cost must be rising.
B. Additional firms will be attracted into the industry.
C. The firm could raise price and increase profits.
D. The firm could lower price and increase profits.
Answer: B
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The characteristic most closely associated with oligopoly is
A. a few large producers. B. easy entry into the industry. C. product standardization. D. no control over price.
The aggregate production function used in the Solow model expresses GDP as a function of:
A) level of technology and total efficiency units of labor only. B) physical capital and level of technology. C) physical capital and total efficiency units of labor only. D) physical capital, level of technology, and total efficiency units of labor.
A local government can spend $800 today on a project that will yield $968 of benefits two years from today.
(i) If the interest rate is 4%, what is the present value of the project? (ii) For what interest rates would it be beneficial for the government to pursue the project?
The Standard Oil trust
A. was broken up in 1946. B. was controlled by several foreign nations. C. forced its rivals out of business. D. was put together by the U.S. government.