Which of the following conditions is characteristic of a monopolistically competitive firm in short-run equilibrium?
a. P > ATC
b. P = ATC
c. P < ATC
d. Any of the above could be correct.
d
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Wealthy consumers do not have to make decisions on what to buy or how much to save
a. True b. False Indicate whether the statement is true or false
In the case of a negative externality, in order to achieve efficiency the government must set the _________________ equal to the marginal ____________________
A) tax; external costs B) tax; external benefits C) subsidy; external costs D) subsidy; external benefits E) tax; private costs
Additionally, the federal funds rate is
A. Very important for the Fed's monetary policy because individual borrowers pay this interest rate for mortgage loans B. Very important for the Fed's monetary policy because the Fed uses the federal funds rate as a monetary policy target since it can control the rate through open market operations C. Very important for the Fed's monetary policy because it is Administratively set by the Fed
The peak of the isoprofit curve has which of the following characteristics?
A. It is the point on the isoprofit curves where Cournot competitors can efficiently achieve collusion profits. B. It is the point at which monopoly profits are always achieved. C. It is the point at which the isoprofit curve crosses the reaction function. D. It is the point on the isoprofit curves associated with the highest profit.