Refer to the above figure. Line ABC is called
A. the saving function.
B. aggregate supply.
C. the consumption function.
D. the 45-degree line.
Answer: C
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Miniville is an isolated town located on the southern shore of Lake Condescending, a very large lake. The western edge of Miniville is adjacent to impassable mountains and there are no towns or businesses for many miles to the east. The 300 residents of Miniville are evenly distributed along 3 miles of shoreline on the lake, east of the mountains. Lake Shore Drive, the only street in town, provides access to Miniville's homes and businesses. All residents live between the lake and the street; businesses locate on the other side of the street. Lake Shore Drive is 3 miles long, and the points labeled A, B, and C are 1, 2, and 3 miles from the western end of Lake Shore Drive, respectively. All residents of Miniville shop at the store located closest to their homes. src="https://sciemce.com/media/4/ppg__rrr0818190951__f1q215g1.jpg" alt="" style="vertical-align: 0.0px;" height="117" width="538" />________ residents of Miniville live west of point B, and ________ live east of point A.
A. 150; 150
B. 100; 200
C. 200; 100
D. 200; 200
Which of the following statements is CORRECT for a monopolistically competitive firm in the short run?
A) Its total revenue is maximized. B) Its total fixed cost is 0. C) Its marginal cost is equal to its marginal revenue. D) Its price is equal to its marginal cost.
A monopolistically competitive firm
a. tries to differentiate its product from competitors' products. b. faces a perfectly elastic demand curve for its product. c. has more monopoly power in the long run than does a perfectly competitive firm. d. is always a retail establishment.
The free-rider problem
a. forces the supply of a public good to exceed its demand. b. results in common resources becoming club goods. c. explains why many local governments supply public goods. d. results in public goods becoming private goods.