The data illustrate the:
A. law of comparative advantage.
B. utility-maximizing rule.
C. law of diminishing marginal utility.
D. law of increasing opportunity costs.
C. law of diminishing marginal utility.
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A difference between a perfectly competitive industry and a monopoly is that
A) in the long run, firms in a perfectly competitive industry make zero economic profit and a monopoly can make an economic profit. B) a firm in a perfectly competitive industry can perfectly price discriminate but a monopoly cannot. C) only monopolies have an incentive to maximize profit. D) perfectly competitive firms can have a public franchise. E) a barrier to entry protects perfectly competitive firms in the short run and protects a monopoly in the long run.
The figure above shows a typical perfectly competitive corn farm, whose marginal cost curve is MC and average total cost curve is ATC
Assuming there are no changes in technology, in the long run the lowest possible price for corn is ________ per bushel. A) $2.50 B) $2.00 C) $3.00 D) $3.50
Suppose that households became mistrustful of the banking system and decide to decrease their checking account balances and increase their holdings of currency
Using the money demand and money supply model and assuming everything else is held constant, the equilibrium interest rate should A) decrease. B) increase. C) not change. D) increase, then decrease.
How does the tax wedge influence potential GDP?
What will be an ideal response?