Assume price exceeds average variable cost over the relevant range of demand. If a monopolistically competitive firm is producing at an output where marginal revenue is $23 and marginal cost is $19, then to maximize profits the firm should
A) continue to produce the same quantity. B) decrease output.
C) shut down. D) increase output.
D
Economics
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The simple median voter model is unbiased with respect to special interests
a. True b. False
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If income rises by 10 percent and the quantity sold of a particular vehicle falls by 7 percent, then this particular type of vehicle is
A. An inferior good. B. A normal good. C. An irregular good. D. A substandard good.
Economics
Which of the following characteristics of a production possibilities frontier indicates that trade-offs must be made?
A. The downward slope B. The upward slope C. The constant slope D. The curvature
Economics
?The budget line on a graph represents choices which exhaust all resources.
Answer the following statement true (T) or false (F)
Economics