The process of entry and exit into a monopolistically competitive market causes:
A. the firm's demand curve to shift left and/or right.
B. the firm's supply curve to shift left and/or right.
C. the firm's average total cost curve to shift left and/or right.
D. the firm's marginal cost curve to shift straight up and/or down.
A. the firm's demand curve to shift left and/or right.
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When underproduction occurs,
A) producers gain more surplus at the expense of consumers. B) marginal cost is greater than marginal benefit. C) consumer surplus increases to a harmful amount. D) there is a deadweight loss that is borne by the entire society. E) the deadweight loss harms only consumers.
The financial market events of September and October 2008 ________
A) sparked a sharp widening of the credit spread B) signalled the success of the policy response to the financial crisis C) reduced some of the uncertainty that had paralyzed financial markets D) resulted from the federal funds rate having fallen below zero
If you hear a person saying "I lost my job because I was replaced by a machine," you should conclude that this person is ________ unemployed.
A. seasonally B. cyclically C. structurally D. frictionally
Bill is an economics professor who earns $37,000 teaching but decides to leave and fulfill his dream of catering barbecues. During his year of barbecuing he earned total revenue of $60,000. He spent $30,000 on food and supplies
He also paid his wife $10,000 to help serve food. The normal profit for an entrepreneur running a barbecue business is $3,000. Bill also rented an industrial grill/fry truck for $12,000. Bill had an economic A) profit of $20,000. B) loss of -$32,000. C) loss of -$42,000. D) profit of $28,000. E) profit of zero.