Excess capacity is a characteristic of monopolistically competitive firms. What does excess capacity mean?
A) It means that firms do not produce the output level that corresponds to the minimum point on their average total cost curves.
B) It means that firms hire more than the minimum number of workers needed to produce the profit-maximizing level of output.
C) It means that firms produce with inefficient combinations of resources.
D) It means that firms build plants that are not large enough to achieve minimum efficient scale.
Answer: A
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Which statement is true?
A. Until 1971, the U.S. ran a trade deficit virtually every year of the 20th century. B. The U.S. ran trade surpluses for most of the 19th century. C. In the 1920s, the U.S. flooded the rest of the world with consumer goods such as Model T Fords, radios and waffle irons as our trade surpluses increased. D. Until after WWII most of U.S. exports were agricultural products, such as cotton and grain sent to Europe.
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A. present discounted value. B. future value. C. present inflated value. D. future discounted value.
The ________ in the United States is set at three times the cost of the Department of Agriculture's minimum food budget.
A. official poverty line B. cost of living C. minimum wage D. Medicare threshold
The new growth theory was developed by ________ and proposes that ________
A) Thomas Malthus; increases in population drive wages to their subsistence level B) Ben Bernanke; changes in the money supply drive economic growth C) Paul Romer; the desire for profits drives increases in real GDP per person D) Adam Smith; markets will determine the appropriate economic growth rate E) Robert Solow; increases in technology growth are responsible for economic growth