In monopolistically competitive markets in long run equilibrium:
a. more than the efficient level of output will be produced because price exceeds marginal cost
b. less than the efficient level of output will be produced because price exceeds marginal cost.
c. more than the efficient level of output will be produced because marginal revenue exceeds marginal cost.
d. less than the efficient level of output will be produced because marginal revenue exceeds marginal cost.
b
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For a monopolist with a downward-sloping demand curve,
a. the coefficient of price elasticity of demand is infinite. b. the coefficient of price elasticity of demand is zero. c. as price increases, marginal revenue decreases. d. as price decreases, marginal revenue decreases. e. when the price is equal to zero, marginal revenue is equal to zero.
A valid and useful theory of gold prices:
A. very likely includes as many details as possible about gold prices. B. helps to explain and predict the movements of gold prices over time. C. all of the above D. very likely relies on complex assumptions.
Refer to the graph showing the demand for books. A movement from point E to point D is caused by:
A. an increase in the price of books from $12.00 to $16.00. B. a decrease in the price of books from $16.00 to $12.00. C. an increase in the price of movies. D. an increase in consumer income.
The incentive to work is an ingredient of the negative income tax because:
a. if families do work, they will be eliminated from the program. b. if families don't work, they will be eliminated from the program. c. the more income earned in the workplace, the higher the family's after-tax income. d. the more income earned in the workplace, the higher the payment from the government. e. the amount earned in the workplace is not subject to income taxes.