A monopolistic competitor incurs an average total cost of $20 while producing the profit-maximizing output of 900 units. If the profit earned by the monopolist $1,800, the price per unit of output is _____
a. $18
b. $22
c. $25
d. $20
b
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The United States
A. has sometimes attained productive efficiency. B. usually attains productive efficiency. C. never attained productive efficiency.
A key feature of the 2003 tax reform was
a. the creation of an estate tax b. reduction of the tax rate on dividends and capital gains c. eliminating the capital gains tax d. eliminating tax exemptions e. increasing tax deductions for corporate expenditures on entertainment
Among the following situations, which one is least likely to apply to a monopolistically competitive firm?
a. profit is positive in the short run b. total cost exceeds total revenue in the short run c. profit is positive in the long run d. total revenue equals total cost in the long run
In most developed economies, unemployment insurance benefits
a) are nonexistent b) paid for by insurance companies c) initially replace 100% of lost wages d) replace an increasing percentage of lost earnings as the duration of unemployment becomes prolonged e) become less generous as the duration of unemployment is prolonged