Tombstones are produced in a monopolistic competitive market. One producer, Rolling Stones, sells 20 tombstones a week at a price of $500 each. Its average total cost is $600 . From this information, we can tell:
a. new tombstone firms will want to enter.
b. this producer is losing $2,000 a week.
c. this producer is making an economic profit of $400.
d. this producer is setting MR = MC.
e. this producer should increase production.
b
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Barbara is willing to loan $10,000 if she can earn a real interest rate of 6 percent. Everything else the same, if the inflation rate is 2 percent, she would agree to loan the $10,000 if the nominal interest rate is
A) 3 percent. B) 10 percent. C) 4 percent. D) 12 percent. E) 8 percent.
If real GDP per capita doubles between 2005 and 2020, what is the average annual growth rate of real GDP per capita?
A) 4.7% B) 10.5% C) 15% D) 21%
Explain, in detail, how the adjustment to macroeconomic equilibrium occurs when spending is less than production. Be sure to discuss how inventories play a crucial role in the adjustment process
State what happens to GDP and employment during the adjustment process.
A technology shock could have a different impact than a natural catastrophe because ________
A) the former would likely lower TFP and the latter raise labor productivity B) the former would likely lower output and the latter raise production C) the former would likely raise output and the latter would raise TFP D) the former would likely lower labor productivity and the latter would lower TFP E) the former would likely raise TFP and the latter would curtail production