In the short run, producer surplus equals
a. TR - VC
b. TR - AVC
c. TR + VC
d. TR - AFC
e. TR + TC
A
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In the classical model, a change in aggregate demand
A) causes changes in both the long-run real GDP and in the price level. B) causes a change in long-run real GDP but not in the price level. C) causes a change in the price level but not in the long-run real GDP. D) has no effect on either real GDP or the price level.
Which of the following is characteristic of oligopoly, but NOT of monopolistic competition?
A) The choices made by one firm have a significant effect on other firms. B) Each firm faces a downward-sloping demand curve. C) Firms are profit-maximizers. D) There is more than one firm in the industry.
What is the marginal rate of substitution?
A) the rate at which the consumer is willing to trade one good for another without any loss in utility B) the rate at which the consumer is willing to trade one good for another so that she increases her utility C) the price ratio D) the rate at which the consumer must give up one good to purchase an additional unit of the other goods in the market
A supplier of paper napkins to the fast food industry is unlikely to have significant bargaining power
Indicate whether the statement is true or false