Before entry into an industry, a profit-maximizing decision maker will compare the expected market price with the expected
a. long-run average total cost.
b. short-run marginal cost.
c. long-run average variable cost.
d. short-run average total cost.
A
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A measure defined per unit of time is called a(n) ________ variable.
A. stock B. aggregate C. flow D. nominal
Consider an economy that only produces wooden chairs. In 2012, the economy produced 100 wooden chairs priced at $10 each. The nominal GDP of the economy for the year 2012 will be:
A) $10. B) $1,000. C) $100. D) $10,000. Consider an economy that produces only cell phones. In the year 2012, the economy manufactures 275 cell phones, and each cell phone sells at $200. In the year 2013, the economy manufactures 280 cell phones but the price of each cell phone falls to $180.
Product differentiation exists within an industry if
A) there are no substitutes for a product. B) there are close but not perfect substitutes for a product. C) the firm can sell all it wants at the chosen price. D) there is a monopoly.
The most recent data indicates households in the top fifth of the income distribution earn as much income as the bottom four fifths combined
a. True b. False