Figure 11.4Figure 11.4 depicts demand and costs for a monopolistically competitive firm. If the firm's demand curve shifts to the left as more firms enter the market:
A. the firm's average cost will be lower at the new profit maximizing output level.
B. the firm's marginal cost will be higher at the new profit maximizing output level.
C. the firm's marginal revenue will remain the same at the mew profit maximizing output level.
D. the firm's marginal cost will remain the same at the new profit maximizing output level.
Answer: D
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If there is excess demand in a market, then this suggests that:
A. the market price is above the equilibrium price. B. there is an opportunity for mutually beneficial trades. C. there is no way to help some people without harming others. D. the market is in equilibrium.
Suppose the Bureau of Labor Statistics interviews 194,000 people in its monthly survey: 91,300 are not in the labor force, 94,000 are employed, 6650 are unemployed, and 1,150 are in the armed forces. What is the unemployment rate the BLS announces?
A) 4.95 percent B) 3.94 percent C) 7.0 percent D) 6.55 percent E) 6.48 percent
In the short run, which of the following is the most likely effect of an unanticipated move to a more expansionary monetary policy?
a. an increase in employment b. a decrease in employment c. an increase in the velocity of money d. an increase in prices proportional to the rise in the money supply
The shape of the total-cost curve is unrelated to the shape of the production function
a. True b. False Indicate whether the statement is true or false