Compared with a monopolist, the demand curve faced by a monopolistically competitive firm is
A) more elastic.
B) more inelastic.
C) perfectly elastic.
D) perfectly inelastic.
A
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Refer to the figure below. If the current market price were $20: 
A. there would be an excess demand of 35 units. B. the market would be in equilibrium. C. there would be an excess supply of 25 units. D. there would be an excess demand of 25 units.
Which of the following can happen?
a. Prices are rising and the inflation rate is negative but rising. b. Prices are falling and the inflation rate is positive and falling. c. Prices are falling and the inflation rate is positive and rising. d. Prices are rising and the inflation rate is positive but falling. e. Prices are rising and the inflation rate is negative and falling.
Which of the following is NOT an example of the efforts to reduce the adverse selection problem?
A. Sellers offer warranties. B. Consumers invest in information. C. Sellers offer money-back guarantees. D. All of these are examples of efforts to reduce adverse selection.
Suppose a single-input production function has initially increasing but eventually decreasing marginal product -- and suppose we know that an interior solution is profit maximizing. In this case, the first order condition for the profit maximization problem
A. is necessary for identifying the profit maximizing production plan. B. is sufficient for identifying the profit maximizing production plan. C. is both necessary and sufficient for identifying the profit maximizing production plan. D. is neither necessary nor sufficient for identifying the profit maximizing production plan.