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 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?
The second-largest component of aggregate expenditures in the United States is _____
a. consumption b. investment c. government expenditure d. imports e. exports