The above figure shows the demand and cost curves for a firm in monopolistic competition. The firm makes the maximum profit when the marginal cost of last item produced equals
A) $5.
B) $10.
C) $15.
D) $20.
A
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After increasing at more than 2 percent per year between 1950 and 1973, the growth rate of average labor productivity ________ between 1973 and 1995, and ________ between 1996 to 2007.
A. speeded up; accelerated even more B. slowed; decreased even more C. slowed; picked up D. speeded up; slowed
Goods that are rival in consumption include both
a. club goods and public goods. b. public goods and common resources. c. common resources and private goods. d. private goods and club goods.
Free trade
A. hurts economic growth because foreign countries can produce goods with lower labor costs. B. hurts economic growth because foreigners are not bound by the same patent laws as we are. C. helps economic growth by increasing tariffs. D. helps economic growth by encouraging the sharing of technology and industrial ideas.
Long-run macroeconomic policies concentrate on:
A) minimizing fluctuations around potential GDP. B) maximizing fluctuations around potential GDP. C) incentives for increasing productivity and the potential output of the economy. D) none of the above.