Billy is running a fast-food burger stand in his small community. If he is like other monopolistic competitors in short-run equilibrium which of the following would be true?
a. His demand curve would be downward sloping
b. His marginal revenue curve would lie below his demand curve.
c. He would be maximizing profits where his MC = MR.
d. All of the above would be characteristics of Billy's burger stand.
d
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Comment on the following statement: "In an oligopoly, the behavior of any one firm depends on the reaction it expects of all the others in the industry."
What will be an ideal response?
The form of public debt that matures in 30 years is the
a. Treasury certificate of deposit b. Treasury bill c. Treasury note d. Treasury bond e. U.S. savings bill
A U.S. firm buys apples from New Zealand with New Zealand dollars it got in exchange for U.S. dollars. New Zealand residents then use these dollars to purchase oranges from the U.S. Which of the following increases?
a. New Zealand's net capital outflow and New Zealand's net exports b. only New Zealand's net exports c. only New Zealand's net capital outflow d. neither New Zealand's net exports nor New Zealand's capital outflow
If the demand and supply for pickup trucks both increase, which of the following would happen?
a. Quantity becomes indeterminate.
b. Quantity falls.
c. Price rises.
d. Price becomes indeterminate.