If firms in a monopolistically competitive industry are incurring losses, in the long run firms will leave this industry until

A. MC = ATC.
B. P = MC.
C. MR = ATC.
D. P = ATC.


Answer: D

Economics

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The slope of an individual's "consumption-leisure" budget constraint is:

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(Consider This) Brinley is the hottest new pop singer, but his agent discovers that Internet sales of Brinley's music have been poor due to Internet piracy, but concerts are regularly sold out and merchandise (such as T-shirts) sells well. If Brinley

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People's tendency to prefer the "default" option over other options is known in prospect theory as the:

A. Anchoring effect B. Mental accounting effect C. Status quo bias D. Confirmation bias

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After a price ceiling of $8 is placed on the market in the graph shown, which area represents consumer surplus?



A. A + C
B. A + B
C. A + B + C
D. A + B + C + D + F + G

Economics