Which of the following examples reflects monopolistic competition?
a. After modernizing equipment, Mitchell, Inc operates at the lowest average cost of production.
b. After making long-run adjustments, Slattery, Inc operates at 90 percent of capacity.
c. Long-run adjustments allows Gable, Inc to operate at 100 percent capacity.
d. Production refinements allow Jones, Inc. to operate at a level where average total cost is minimized.
b. After making long-run adjustments, Slattery, Inc operates at 90 percent of capacity.
You might also like to view...
Which of the following does NOT shift the U.S. aggregate demand curve?
A) an increase in GDP in Japan B) an increase in the supply of money C) a decrease in taxes D) a decrease in the price level
In economics, the entrepreneur is the person who
a. acts as the go-between among different manufacturers. b. puts together land, labor, and capital and tries to make a profit. c. is a shrewd business executive who works as a consultant to other businesses to show them more profitable methods of operation. d. is a visiting diplomat from France.
Nonactivists believe that ________
A) there is a very rapid self-correcting mechanism since prices and wages are very flexible B) lags to policy implementation are so long that even the "correct" policies may lead to undesirable consequences C) policy interventions should take place less frequently than what Keynesians advocate D) all of the above E) none of the above
Define the following terms and explain their importance to the study of macroeconomics:
a. Phillips curve b. rational expectations c. indexing d. stagflation