In a monopolistically competitive market,
a. entry by new firms is impeded by barriers to entry; thus, the number of firms in the market is never ideal.
b. entry by new firms is impeded by barriers to entry, but the number of firms in the market is nevertheless always ideal.
c. free entry ensures that the number of firms in the market is ideal.
d. there may be too few or too many firms in the market, despite free entry.
d
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The unemployment rate can remain below the natural rate, but only _____
a. in the long run b. with continuous deflation c. with a continuously increasing inflation rate d. with a series of adverse supply shocks e. if the money supply is constant
Which of the following events would cause a movement downward and to the left along the supply curve for mangos?
a. The number of sellers of mangos decreases. b. There is an advance in technology that reduces the cost of producing mangos. c. The price of mangos falls. d. The price of fertilizer increases, and fertilizer is an input in the production of mangos.
Exhibit 7-1 Production of pizza data Workers Pizzas 0 0 1 4 2 10 3 15 4 18 5 19 Exhibit 7-1 shows the change in the production of pizzas as more workers are hired. The marginal product of the second employee equals:
A. 4. B. 10. C. 14. D. 6.
The distance between the supply curve and the price the producer receives for a product for a given quantity supplied is referred to as:
A. market surplus. B. consumer surplus. C. producer surplus. D. market shortage.