These are the cost and revenue curves associated with a monopolistically competitive firm. 
According to the graph shown, the monopolistically competitive firm:
A. will earn profits equal to area B.
B. will cause deadweight loss equal to area C.
C. should leave the industry in the long run.
D. should act like a monopolist in the short run.
Answer: D
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Which of the following products comes closest to having a perfectly inelastic demand?
A) bus rides B) cholesterol medication in general C) gasoline D) iPhones
The above figure shows the payoff to two firms in an industry deciding to make an investment in worker safety. The Nash equilibrium
A) is for just one of the firms to make the investment. B) is for both firms to make the investment. C) is for neither firm to make the investment. D) does not exist.
What type of relationship does the real interest rate have with respect to Investment spending?
A. No relationship B. constant relationship C. positive relationship D. negative relationship
Given that resources are scarce,
A. Opportunity costs are experienced whenever choices are made. B. Poor countries must make choices, but rich countries with abundant resources do not have to make choices. C. Some choices involve opportunity costs while other choices do not. D. A "free lunch" is possible, but only for a limited number of people.