The key difference between monopolistic competition and perfect competition is that in monopolistic competition the tangency of
A. AC and the demand curve occurs along the negatively sloped part of AC.
B. the demand curve and AC occurs at the minimum point of the AC curve.
C. AC and the demand curve occurs along the positively sloped part of AC.
D. MC and MR at the optimum output.
Answer: A
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The decrease in the incentive to work created by welfare payments programs
A) only affects low income taxpayers. B) only affects taxpayers but not welfare recipients. C) only affects high income executives. D) affects both taxpayers and welfare recipients.
The linear probability model always contains heteroskedasticity when the dependent variable is a binary variable unless all of the slope parameters are zero.
Answer the following statement true (T) or false (F)
An increase in which of the following determinants of demand will have an ambiguous (uncertain) effect on price?
A. price of a complement B. taste C. price of a substitute D. income
Related to the Economics in Practice on page 151: Which of the following is the best analysis of the question of how fast delivery truck drivers should drive in order to reduce costs?
A. They should drive as quickly as possible in order to make more deliveries per day. B. They should balance the concerns of speed and fuel efficiency and drive at a speed that minimizes total expenses. C. They should drive at the most fuel - efficient rate in order to reduce fuel consumption costs. D. They should drive as close to the legal speed limit as possible