Compared with a monopolist, the demand curve faced by a monopolistically competitive firm is
A) more elastic.
B) more inelastic.
C) perfectly elastic.
D) perfectly inelastic.
Answer: A
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In the above figure, Jill's opportunity cost of producing 1 gallon of bottled water is ________ of soda
A) 4 gallons B) 1/4 of a gallon C) 1 gallon D) 1/2 of a gallon E) 2 gallons
When the real interest rate increases
A) the supply of loanable funds curve shifts rightward. B) the supply of loanable funds curve shifts leftward. C) there is a movement upward along the supply of loanable funds curve. D) there is a movement downward along the supply of loanable funds curve.
A monopolist's profit-maximizing price and output correspond to the point on a graph
A) where total costs are the smallest relative to price. B) where marginal revenue equals marginal cost and charging the price on the market demand curve for that output. C) where average total cost is minimized. D) where price is as high as possible.
The socially optimal amount of pollution is
A) zero. B) greater than zero. C) indeterminant. D) unattainable.