A profit-maximizing monopolistic competitor continues production until ________
A) marginal revenue exceeds marginal cost
B) marginal revenue equals marginal cost
C) marginal revenue exceeds average revenue
D) marginal revenue equals average revenue
B
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The demand curve for coffee shifts
a. only when income changes. b. when a determinant of the demand for coffee other than the price of coffee changes. c. when the price of coffee changes. d. Both b and c are correct.
In a random effects model, we assume that the unobserved effect is correlated with each explanatory variable.
Answer the following statement true (T) or false (F)
Which one of the statements is true? a. Diminishing returns is a long-run concept while decreasing returns to scale is a short-run concept
b. Diminishing returns is a short-run concept while decreasing returns to scale is a long-run concept. c. Diminishing returns is a both short and long-run concept while decreasing returns to scale is a short-run concept. d. Diminishing returns is a long-run concept while decreasing returns to scale is a short and long-run concept.
According to the Keynesian model, increased foreign spending for U.S. goods is likely to
a. reduce total employment in the United States. b. increase total employment in the foreign country. c. reduce total output in the United States. d. increase total output in the United States.