A profit-maximizing firm in a monopolistically competitive market differs from a firm in a perfectly competitive market because the firm in the monopolistically competitive market
a. chooses its profit-maximizing quantity where marginal revenue equals marginal cost.
b. sells its product in a highly-concentrated market.
c. faces a downward-sloping demand curve for its product.
d. can earn profits in the long run.
c
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The labor supply and demand most directly affect the level of ________ in an economy
A) people requiring retraining B) welfare benefits C) people attending colleges D) employment
An economic expansion rather than a recession occurs
A) when the federal budget is balanced. B) when the unemployment rate falls below 5 percent. C) when growth in real GDP is positive. D) when the unemployment rate is not changing.
Suppose the production of mp3 players can be represented by the following production function: q = L0.4K0.4. The firm currently produces q1 units. If all inputs doubled, the new level of output will equal
A) 20.4 q1. B) 20.8 q1. C) 0.8 q1. D) 1.6 q1.
A simultaneous $10 million increase in both taxes and government spending will have no net effect on aggregate demand
a. True b. False Indicate whether the statement is true or false