In monopolistic competition there is allocative inefficiency because
A. Production is not at the minimum ATC.
B. Price is greater than MC.
C. Price is greater than the minimum ATC.
D. Of excess capacity.
Answer: B
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A) A + B B) B C) A D) B + C
The recession of 1990-1992 ________ the trend set over 1965-1990 of ________ unemployment rates at each successive cyclical trough
A) continued, lower B) continued, higher C) broke, lower D) broke, higher
An application of behavioral economics is:
A. price inconsistency. B. rational cost-price decision making. C. forgetting the fungibility of money. D. All of these are applications of behavioral economics.
Too much of society's scarce resources are used to produce goods in monopoly markets
a. True b. False Indicate whether the statement is true or false