If Figure 8.1 depicts the current situation for a monopolistically competitive firm, then in the long run we expect:
A. the firm to charge a price higher than P1.
B. the firm to produce and sell more than Q1.
C. the average costs of production to decrease below AC1.
D. the firm to charge a price lower than P1.
Answer: D
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The public choice model can be used to examine voting models that contrast the manner in which collective decisions are made by governments (state, local, and federal) and the manner in which individual choices are made in markets
Which of the following descriptions is consistent with the difference between collective decision-making and decision-making in markets? A) Individuals are less likely to see their preferences represented in the outcomes of government policies than in the outcomes of markets. B) The cost of a government policy is determined by a majority vote of members of the public; decisions made in markets are based on individual willingness to pay. C) Choices made through government policies are more important than decisions individuals make through markets. D) Everyone who votes must agree with a decision made collectively through government, but in markets individuals can make their own choices.
A recent accounting graduate from a major business school is searching for a place to begin his career as an accountant. This individual is
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How do growth rates vary across countries? Are the rich countries getting richer while the poor are getting poorer?