A monopolistically competitive firm maximizes profit in the short run by producing where
A) price is less than marginal cost.
B) price is less than marginal revenue.
C) price is less than average revenue.
D) price is greater than marginal cost.
Answer: D
You might also like to view...
An across-the-board income tax cut where all income taxes were cut by a constant percentage would
A. necessarily go to higher-income people and alter the after-tax distribution of income in favor of high-income people. B. necessarily go to higher-income people. C. alter the after-tax distribution of income in favor of high-income people. D. by definition, keep the after-tax distribution of income relationships constant.
Monetary policy has no effect on equilibrium income when the
A) LM curve is positively sloped. B) IS curve is negatively sloped. C) IS curve is vertical. D) IS curve is horizontal.
Refer to the game in Scenario 13.6. What will occur if ERS Co plays a maximin strategy?
A) -$100, -$1 B) $2, -$0.5 C) $1, -$1 D) -$0.5, -$0.5 E) There is a 0.25 chance of each outcome in that case.
In recent years, the United States has:
A. exported more services abroad than it has imported. B. had a small goods trade surplus with Japan. C. had a large goods trade surplus with the rest of the world. D. maintained an overall trade surplus (goods and services combined) with the rest of the world.