The figure above shows the cost, marginal revenue, and demand curves of Golden Chow, a producer of dog food. The market for dog food is monopolistic competition. In the short run, Golden Chow sells 400 cans of dog food per day and makes ________
Other firms have ________ incentive to enter the industry. A) an economic profit of $200 a day; an
B) an economic profit of $400 a day; an
C) a normal profit of $200 a day; no
D) an economic profit of $400 a day; no
A
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A producer is said to have a comparative advantage in the production of a good when:
A) the producer has a higher opportunity cost than another producer. B) the producer can produce more units of the good per hour than another producer. C) the producer has a lower opportunity cost than another producer. D) the producer charges a higher price for the good than the other producers.
Using estimates of past returns, which monthly investment is most likely to result in the largest amount of money at retirement for a person in the early 20s?
A) CDs B) Treasury bills C) stocks D) all of the above will result in a similar amount of money
The process whereby votes are exchanged to gain support for legislation is referred to as
A) logrolling. B) rational ignorance. C) simple majority voting. D) special interest voting. E) a and d
If the price of an asset is rising rapidly due to unrealistic expectations about further price growth, then an investor who purchases the asset will ________ a great deal of money.
A. always make B. never make C. always lose D. sometimes make