Beyond the point of efficient scale, marginal cost pulls the average total cost upward
a. True
b. False
Indicate whether the statement is true or false
True
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The Ricardo-Barro effect asserts that
A) government saving affects private saving. B) government budget deficits crowd out private borrowing. C) government expenditure affects private expenditure. D) taxation raises interest rates.
One difference between oligopoly and monopolistic competition is that
A) a monopolistically competitive industry has fewer firms. B) in monopolistic competition, the products are identical. C) monopolistic competition has barriers to entry. D) fewer firms compete in oligopoly than in monopolistic competition.
Which of the following will not cause the demand curve for athletic shoes to shift?
What will be an ideal response?
A market equilibrium might not maximize total economic surplus because:
A. in a market equilibrium individuals do not act rationally. B. efficiency is not an important social goal. C. in a market equilibrium individuals do not exploit all opportunities for individual gain. D. sometimes goods entail costs and benefits that do not fall on buyers and sellers.