The typical monopolistic competitor
A. is a large firm.
B. never uses price discrimination.
C. always competes on the basis of producing a product that is physically different from those of its competitors.
D. may compete on the basis of physical differences, convenience, service, and ambience.
D. may compete on the basis of physical differences, convenience, service, and ambience.
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Full employment exists when
A) there is only frictional and structural unemployment. B) the economy is at the natural unemployment rate. C) there is no cyclical unemployment. D) All of the above answers are correct.
Previously a creditor nation, in the 1980s the U.S. became a debtor nation
a. True b. False Indicate whether the statement is true or false
Suppose workers' and firms' expectations of the price level and productivity are accurate. In this case, a reduction in productivity will cause which of the following?
A) a decrease in both the real wage and the natural rate of unemployment B) an increase in both the real wage and the natural rate of unemployment C) a decrease in the real wage and no change in the natural rate of unemployment D) an increase in the real wage and a decrease in the natural rate of unemployment E) none of the above
A perfectly competitive firm is producing zero units of output in the short run. We know that price is
A) below the minimum point of its average fixed cost curve. B) below the minimum point of its average variable cost curve. C) below the minimum point of its average total cost curve. D) between the minimum points of its average total cost curve.