It has been argued that a monopolistically competitive industry involves "waste" because
A) there is too much product differentiation making shelves too crowded.
B) they end up producing to the right of the minimum of the average total cost curve and the price is below the marginal cost.
C) the firms do not equate marginal cost to marginal revenue to find the profit maximizing price and output.
D) the firms do not produce at the minimum of the average total cost curve and price is above marginal cost.
Answer: D
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Refer to Figure 1A.2. The slope of the curve
A) is positive. B) is negative. C) is zero. D) changes along the curve.
What does it mean when one currency is "pegged" against another currency?
What will be an ideal response?
The industrialized group of countries has growth rates that are consistent with the findings of the economic growth model
That is, Taiwan, Korea, and Singapore had ________ incomes in 1960 than the United States and Switzerland, and Taiwan, Korea, and Singapore grew ________ than the United States and Switzerland between 1960 and 2010. A) lower; more rapidly B) greater; more rapidly C) greater; less rapidly D) lower; less rapidly
As the U.S. price level increases, expenditures by which of the following will remain unaffected?
A. Businesses B. Government C. Consumers D. The rest of the world