An important difference between the situation faced by a profit-maximizing monopolistically competitive firm in the short run and the situation faced by that same firm in the long run is that in the short run,
a. price may exceed marginal revenue, but in the long run, price equals marginal revenue.
b. price may exceed marginal cost, but in the long run, price equals marginal cost.
c. price may exceed average total cost, but in the long run, price equals average total cost.
d. there are many firms in the market, but in the long run, there are only a few firms in the market.
c
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In recent years, information technology such as computers and scanners have been a ________ for low-skilled labor and have led to ________ wage rates for low-skilled workers
A) substitute; higher B) substitute; lower C) complement; higher D) complement; lower
Suppose the government currently places tariffs and/or other import restrictions on good X. Will imposing a tariff and/or trade restriction on good Y necessarily reduce overall social welfare for the economy?
What will be an ideal response?
The amount that households have accumulated out of past income through saving and inheritance is
A. wealth. B. consumption. C. future income. D. present income.
Refer to the graph above. If U.S. citizens flock to Canada for summer vacations and buy more Canadian goods and services, then the:
A. The supply curve will shift left
B. The demand curve will shift right
C. The price of U.S. dollars in Canadian dollars will rise
D. The price of U.S. dollars in Canadian dollars will fall