Monopolistically competitive firms do not achieve allocative efficiency in the long run because
a. marginal cost equals marginal revenue
b. marginal cost is greater than marginal revenue
c. marginal cost is less than marginal revenue
d. price is less than marginal cost
e. price is greater than marginal cost
E
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You have found data that indicates that the income elasticity of demand for generic (unbranded) shampoo is -0.7. You should conclude that generic shampoo:
A. has inelastic demand. B. is below its equilibrium price. C. is an inferior good. D. is a normal good.
As the quantity of labor employed increases, the production functions exhibits a
A) positive, linear relationshi
If banks faced a 100 percent reserve requirement, a decrease in banking reserves of $4 million would: a. increase the money supply by $4 million
b. increase the money supply by $400 million. c. decrease the money supply by $4 million. d. decrease the money supply by $400 million.
The price of imported oil decreased in 2001 . How did this affect the aggregate supply curve?
a. It became steeper. b. It became flatter. c. It shifted inward. d. It shifted outward.