Which of the following conditions is characteristic of a monopolistically competitive firm in both the short-run and the long run?
a. P > MC
b. MC = ATC
c. P < MR
d. All of the above are correct.
a
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Prior to financial deregulation, the store of value and medium of exchange functions of money were maintained separate among asset classes because the regulatory agencies
A) precluded the payment of interest by checking accounts. B) allowed the payment of interest by checking accounts. C) specifically prohibited money market stock funds. D) allowed the payment of interest on passbook savings accounts.
Efficient markets theory suggests that purchasing the published reports of financial analysts
A) is likely to increase one's returns by an average of 5 percent. B) is likely to increase one's returns by an average of about 3 to 5 percent. C) is not likely to increase financial returns. D) will increase financial returns in the first year but not in following years.
Assume the figure applies to a pure monopolist and that MC is the same for both graphs. If this firm is able to price discriminate between children and adults, it should charge prices of:
A. P 1 to children and P 2 to adults.
B. P 1 to adults and P 2 to children.
C. P 1 to both children and adults.
D. P 2 to both children and adults.
A French worker can produce either 4 barrels of wine or 16 shirts a week; and Italian worker can produce either 10 barrels of wine or 20 shirts a week.
A. After the countries begin to trade, one barrel of wine will cost between four and eight shirts. B. France has an absolute advantage in both wine and shirts. C. France will export shirts and import wine. D. France has an absolute advantage in making shirts.