The difference between a monopolist and a monopolistic competitor is that:
A. the average total cost curve of a monopolistic competitor is tangent to the demand curve in long-run equilibrium, but the average total cost curve of a monopolist can be in a position below the price in long-run equilibrium.
B. the average total cost curve of a monopolist is tangent to the demand curve in long-run equilibrium, but the average total cost curve of a monopolistic competitor can be in a position above the price in long-run equilibrium.
C. the average total cost curve of a monopolist is tangent to the demand curve in long-run equilibrium, but the average total cost curve of a monopolistic competitor can be in a position below the price in long-run equilibrium.
D. a monopolist equates marginal revenue and marginal cost whereas a monopolistic competitor equates price and marginal cost.
Answer: A
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We can increase the United States' rate of economic growth by
A. devoting more output to capital goods.
B. devoting more output to improving our technology.
C. devoting more output to improving the quality of our labor force.
D. all of the choices are true.
The nominal price of industrial red paint was $12 per gallon in 1993. To convert this value to the real price of paint in 2012 dollars, we should use the:
A) Consumer Price Index. B) Producer Price Index C) Fed funds rate. D) 30-day T-bill rate.
Marginal revenue is: a. the additional cost incurred from producing one more unit of output. b. the addition to total profit from selling one more unit of output
c. the addition to total revenue from selling one more unit of output. d. the addition to total output from hiring one more unit of labor.
How much is induced consumption when disposable income is $10 billion?
