A firm operating in a monopolistically competitive market can earn economic profits in
a. the short run but not in the long run.
b. the long run but not in the short run.
c. both the short run and the long run.
d. neither the short run nor the long run.
a
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The above figure shows a housing market with a rent ceiling equal to $1,000. In this figure, what area is equal to the deadweight loss?
A) area A B) area B C) area C D) area D E) area E
What does the Cobb-Douglas production function assume about the input shares in the economy?
A) the capital share is larger than the labor share of income B) both the capital and labor shares of income grow over time C) both the capital and labor shares of income remain relatively constant over time D) the capital share of income is equal to the labor share of income E) none of the above
The expected rate of currency depreciation is equal to the proportional difference between the forward rate and the spot rate. This is known as the:
a. forward depreciation. b. backward depreciation. c. forward premium. d. backward premium.
The Board of Governors of the Fed performs each of the following functions, except:
A. approving bank merger applications. B. analyzing financial and economic conditions. C. setting the reserve requirement. D. making discount loans.