Which of the following is the long-run outcome for monopolistic competition?
A. P > ATC > MC.
B. P = AVC.
C. P = ATC.
D. MR > MC.
Answer: C
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Answer the following statement true (T) or false (F)
1) Demand is the active and supply the passive determinant of land rent. 2) Different rents on land reflect differences in the marginal revenue product of land. 3) The free-land era of U.S. history reflected a situation in which the quantity of land available at a zero price exceeded the quantity of land demanded. 4) Rent performs an incentive function, but no rationing function. 5) The interest rate is the price paid for the use of money.
If the price were $15, how much would the firm's output be in the short run?
The expenditure approach to deriving gross domestic product sums the following categories of spending
A. consumption, government spending, transfer payments, and net exports. B. consumption, investment, government spending, and net exports. C. consumption, savings, investment, and government spending. D. consumption, income, government spending, and net exports.
Efficient markets theory suggests that purchasing the published reports of financial analysts
A. is not likely to increase financial returns. B. is likely to increase one's returns by an average of 5 percent. C. will increase financial returns in the first year but not in following years. D. is likely to increase one's returns by an average of about 3 to 5 percent.