Which of the following is an argument in favor of a competitive market structure rather than monopoly?
A. Economies of scale allow a single firm to produce at lower cost than in a competitive market, ceteris paribus.
B. The lure of monopoly power provides a greater incentive for invention and innovation.
C. Monopolies produce less goods at a higher price than competitive markets, ceteris paribus.
D. Monopolies have greater ability to pursue research and design.
Answer: C
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Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 
A. Rising; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C
Two firms, Acme and FirmCo, have access to five production processes, each of which has a different cost and gives off a different amount of pollution. The daily costs of the processes and the corresponding number of tons of smoke emitted are shown in the table below.ProcessABCDE(smoke/day)(4 tons/day)(3 tons/day)(2 tons/day)(1 tons/day)(0 tons/day)Cost to Acme ($/day)$750$800$1,000$1,400$2,000Cost to FirmCo ($/day)$500$750$1,200$2,200$4,000 Suppose the firms are both currently using process A. If the government requires each firm to reduce pollution by 20 percent, then the total cost to society of this policy will be ________ per day.
A. $1,550 B. $950 C. $300 D. $2,350
the question using the following data, which show all available techniques for producing 20 units of a particular commodityAssuming that the firm is motivated by self-interest and that the 20 units that can be produced with each technique can be sold for $2 per unit, the firm will
What will be an ideal response?
Which of the following does NOT occur when the economy is operating at the equilibrium level of GDP?
A. Inventory investment equals zero. B. Planned investment equals actual investment. C. Real GDP tends to rise over time. D. Total planned expenditures equal real GDP.