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.
Answer: A
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The term "tragedy of the commons" describes:
a. how communal ownership of property leads to overuse and speedy exhaustion of resources. b. the very difficult circumstances that the every-day citizens faced when the first arrived in colonial America. c. how collective ownership of property produces a greater incentive for people to shirk, or work less than they otherwise would. d. how establishing governments was very difficult in the initial settlements.
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the short run would be:
A. P1 and Y2. B. P2 and Y3. C. P3 and Y1. D. P2 and Y2.
In the consumer's NPV decision, the correct value for the interest rate R is
A) the interest rate that could be earned in a savings account when the consumer must borrow to finance the purchase. B) the interest rate that would have to be paid on a loan when the consumer could pay for the purchase with funds in a savings account. C) the interest rate charged for the loan when the consumer must borrow to finance the purchase. D) the prime rate, irrespective of whether when the consumer must borrow to finance the purchase. E) the prime rate plus the rate of inflation as measured by the CPI, irrespective of whether when the consumer must borrow to finance the purchase.
Standardized coefficients are also referred to as:
A. beta coefficients. B. y coefficients. C. alpha coefficients. D. j coefficients.