Monopolistic and perfect competition are alike in that:
a. a firm's long-run equilibrium output is located where long-run average total cost is increasing.
b. a firm's long-run equilibrium output is located where long-run average total cost is minimized.
c. firms earn a normal rate of return in the long run
d. firms are price takers.
c
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A(n) ________ in U.S. interest rates will cause an increase in the demand for U.S. dollars and a(n) ________ in the (per dollar) exchange rate
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
What are some of the potential obstacles that can lead to market failure by preventing a market from reaching the efficient outcome? Briefly define each obstacle
What will be an ideal response?
What does it mean to say economics is an empirical science, and how is this related to the question of deciding on the usefulness of a model?
What will be an ideal response?
Engineers for The All-Terrain Bike Company determine that a 10% increase in all inputs will cause an equal percentage increase in output. Assuming that input prices remain constant, you correctly deduce that such a change in inputs will cause ________ as output increases.
A. average costs to decrease B. average costs to increase C. marginal costs to increase D. average costs to remain constant