According to Chamberlin, the fact that in the long run average total cost exceeds its minimum value under monopolistic competition is
A) the social cost of monopolistic competition.
B) the most important reason for why monopolistic competition is not efficient.
C) part of the cost of producing different products for consumers.
D) actually beneficial because it makes adjustments easier when demand increases.
C
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According to the bounded rationality hypothesis, an individual confronting a large number of complicated choices is most likely to respond by
A) using a simple rule of thumb to choose among a subset of easiest-to-evaluate options. B) using the ceteris paribus assumption to assist in simplifying and examining each of the possible options. C) utilizing readily available empirical evidence to assist in evaluating every option. D) assessing every available choice by developing sophisticated theories regarding each option.
For both parties to gain from trade, the price at which they trade must lie between the two opportunity costs
a. True b. False Indicate whether the statement is true or false
Interest rates perform the function of
A) signaling information about the inflation rate. B) allocating funds, but only in the consumer sector. C) allocating funds, which determines the allocation of physical capital. D) rewarding those who save but has no direct allocative role.
The Trade Adjustment Assistance Act is focused mainly on assisting:
A. U.S. firms to establish export markets around the world B. Other nations to become familiar with, and adjust to, U.S. products C. Workers displaced by imports or plant relocations abroad D. Businesses who wish to globalize and compete in the world market