In short-run equilibrium, the monopolistically competitive firm shown will set its price:
A. below ATC.
B. above ATC.
C. below MC.
D. below MR.
A. below ATC.
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To help pay for the cost of sport related injuries, the government imposes a tax on sellers of all sports equipment. Using the above figure, how much deadweight loss results from this tax on sports equipment?
A) cbd B) ced C) abd D) acd
A good measure of a country's level of economic integration with a currency area is
A) the intersection of DD and GG. B) the country's price level. C) the compatibility of economic policies. D) the intersection of AA and GG. E) the extent of trade between the joining country and the currency area and the ease with which labor and capital can migrate between the joining country and the currency area.
Suppose you and your friend are in a shopping mall and you borrow $100 from your friend to pay for a pair of shoes that you purchase in a shop. This is an example of
A) direct financing. B) indirect financing. C) moral hazard. D) transaction costs.
Suppose that for Jason the marginal utility of $50-per-serving caviar is 100 and the marginal utility of $1-per-serving popcorn is 10 . For his snack, Jason should buy
a. the caviar if he has the $50; otherwise the popcorn b. the caviar if he has the $50; otherwise nothing c. the popcorn, whether he has the $50 or not d. one serving each of the caviar and popcorn, if he has $51 e. five servings of popcorn for each serving of caviar