In the long run, a monopolistically competitive firm's demand curve must be tangent to its average cost curve
a. True
b. False
Indicate whether the statement is true or false
True
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In the oligopoly price-fixing game, the payoffs are the
A) profits of the firms. B) market shares of the firms. C) sales of the firms. D) reputations of the firms.
Which of the following is an in-kind transfer payment?
a. Medicaid. b. Social Security. c. unemployment insurance. d. Temporary Assistance to Needy Families.
Ellie has been working for an engineering firm and earning an annual salary of $80,000 . She decides to open her own engineering business. Her annual expenses will include $15,000 for office rent, $3,000 for equipment rental, $1,000 for supplies, $1,200 for utilities, and a $35,000 salary for a secretary/bookkeeper. Ellie will cover her start-up expenses by cashing in a $20,000 certificate of
deposit on which she was earning annual interest of $500 . Ellie's annual accounting costs will equal a. $55,200. b. $75,200. c. $80,500. d. $165,700.
Rent seeking
A. often entails large opportunity costs. B. prevents waste of resources. C. often promotes fairness in distribution of resources. D. cannot occur in a planned economy.