Monopolistic competitive firms are productively inefficient because production occurs where
A. average total cost is not at its lowest.
B. marginal cost is not at its lowest.
C. marginal cost is less than price.
D. price is greater than marginal revenue.
Answer: A
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The figure above shows the marginal social cost curve of generating electricity and the marginal private cost curve. The marginal cost borne by producers when 100 billion kilowatt hours are produced is
A) 5¢ per kilowatt. B) 10¢ per kilowatt. C) 15¢ per kilowatt. D) 20¢ per kilowatt. E) 0¢ per kilowatt.
The market demand curve
A. and the individual demand curve are synonymous. B. is calculated by multiplying the number of consumers by the individual demand curve. C. shows how the total quantity demanded of some good changes as price changes, other things held constant. D. can be calculated even if individual demand curves are unknown.
When Microsoft put together a set of products with the Windows operating system, it was practicing
A) bundling. B) tie-in sales. C) versioning. D) compacting.
Which of the following is a possible difference between health care and other products? a. The demand curve for health care may be steeper than the demand curve for other products
b. The demand curve for health care is a horizontal line, whereas the demand curve for other products is downward sloping. c. The supply curve for health care is fixed, whereas the supply curve of other products change with a change in its determinants. d. The demand for health care is positively related to price, whereas the demand for other products is inversely related to price. e. The supply of health care is inversely related to price whereas the supply of other products are positively related to price.