Firms in monopolistic competition have demand curves that are

All else equal, relative to a person who earns minimum wage, a person who earns $30 per hour has:

A. a higher opportunity cost of taking the day off work. B. the same opportunity cost of spending time on leisure activities. C. a higher opportunity cost of working an additional hour. D. a lower opportunity cost of driving farther to work.

If the opportunity costs of producing a good increase as more of that good is produced, the economy's production possibility frontier will be

A. a negatively sloped straight line. B. negatively sloped and "bowed inward" toward the origin. C. negatively sloped and "bowed outward" from the origin. D. a positively sloped straight line.

Sweet Treats sells its extra-large cupcakes for $14 each and the firm has a constant marginal cost of $6 per cupcake, which is equal to its (constant) average total cost. If Sweet Treats does not sell a cupcake the day it is produced, it is sold as day-old for $4. Sweet Treats should hold the number of cupcakes in inventory that makes the probability of selling that quantity of cupcakes or more

equal to ________. A) 0.80 B) 0.20 C) 0.40 D) 0.60

When a market is in equilibrium,

a. producers earn profits b. the minimum possible price is achieved c. there is no incentive for consumers or producers to change their current behavior d. excess demand is less than excess supply e. the maximum possible price is achieved