The government may not be able to improve the inefficiencies of a monopolistically competitive market
a. True
b. False
Indicate whether the statement is true or false
True
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An increase in frictional unemployment will
A) shift the long-run Phillips curve to the right. B) shift the short-run Phillips curve to the right. C) increase the natural rate of unemployment. D) All of the above are correct. E) None of the above is correct.
A multi-plant firm has three plants and, at its current production levels, the marginal cost of production at each of the three plants is $2. If the firm is perfectly competitive and the market price of its product is $6, which of the following is true?
A) The firm should decrease output at each of the plants to maximize profit. B) The firm is producing the profit-maximizing total output. C) The firm should exactly triple output in each of the plants to maximize profit. D) The firm should increase output at each of the plants to maximize profit.
Economic goods are goods for which the quantity demanded exceeds the quantity supplied at a zero price.
A. TRUE B. FALSE
Perfect price discrimination
a. is a common occurrence in situations with many buyers. b. occurs fairly often in situations with only a few buyers. c. is only observed in competitive markets. d. rarely occurs because firms do not have sufficient power to differentiate among specific buyers.