In the short run, the monopolistic competitor is just like the perfect competitor in that
A. each equates marginal revenue and marginal cost in order to maximize profits, with the result that price exceeds marginal revenue.
B. either type of firm can earn economic profits, experience economic losses, or break even in the short run.
C. new firms enter in the short run when firms are making profits.
D. equilibrium is determined by setting price equal to marginal cost.
Answer: B
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Fill in the blank: The U.S. had ________ throughout the past 10 years
A) balanced budgets B) budget deficits C) budget surpluses D) no budget policy
If the government decreases the income tax rate, they assume it will affect which component of GDP?
A. C B. NX C. G D. A change to the income tax rate will not affect any of these components.
The total amount of output producers are willing and able to produce at alternative price levels in a given time period is known as:
A. Aggregate demand. B. Aggregate supply. C. Real GDP. D. Macro equilibrium.
When the supply curve of a resource is vertical, then the return to the resource owner is
A. pure economic rent. B. partly economic rent and partly opportunity costs. C. partly economic rent and partly profits. D. zero.