In a monopolistically competitive market, the consumer receives the benefit of
A. product differentiation.
B. production where price equals marginal cost.
C. production at minimum average cost.
D. allocative efficiency.
Answer: A
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A monopolist can sell 6 units per day at $8 per unit, or 7 units per day at $7 per unit. Its marginal revenue for the seventh unit of output is: a. $49. b. $7
c. $1. d. $-1.
The second-largest component of aggregate expenditures in the United States is _____
a. consumption b. investment c. government expenditure d. imports e. exports
The relationship between money growth rates and inflation between 1982 and 2010 helps explain why, by the 1990s, most economists had
a. adopted the monetarist explanation of inflation. b. adopted a rules-only approach to monetary policy. c. become more convinced of the monetary causes of inflation. d. abandoned monetarism as the primary explanation of inflation.
Automatic stabilizers:
What will be an ideal response?