Use the following graphs to answer the next question.
The long-run equilibrium for a monopolistically competitive firm is represented by graph
A. A.
B. B.
C. C.
D. D.
Answer: B
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Lou and Alex live together and share household chores. They like to cook some meals ahead of time and eat leftovers. The table below shows the number of rooms they can each clean and the number of meals they can each cook in an hour. Rooms CleanedPer Hour Meals CookedPer HourLou54Alex33If Alex and Lou work out an efficient arrangement for these two chores, then under that arrangement:
A. Lou would do all of the cleaning and all of the cooking. B. Alex would do all of the cleaning, while Lou would do all the cooking. C. Alex and Lou each would do half of the cooking and half of the cleaning. D. Lou would do all of the cleaning, while Alex would do all of the cooking.
Under what conditions should a competitive firm shut down in the short run?
What will be an ideal response?
A tax that is imposed as a specific amount per unit of a good is a(n)
A) excise or specific tax. B) sales or ad valorem tax. C) compound duty. D) income tax.
If apples and pears have equivalent opportunity costs,
a. it makes no difference what the economy produces, pears or apples b. the economy always gains from producing more and trading the other c. the production possibilities curve is bowed out d. one apple trades for two pears e. one apple trades for one pear