Product development is efficient if the
A) new product actually brings great benefits to the consumer.
B) producer's marginal cost of product development equals the consumer's marginal benefit.
C) producer surplus from selling the product equals the consumer surplus.
D) average cost of the product development equals the average revenue generated.
B
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Monopolistic competition and oligopoly are alike because firms in both market structures have some market power.
a. true b. false
Which of the following is the formula for the potential growth rate?
A. The short-term growth rate plus the long-term aggregate productivity growth rate B. The short-term growth rate plus the long-term productivity growth rate C. The short-term aggregate growth rate minus the long-term productivity growth rate D. The long-term labor force growth rate plus the long-term productivity growth rate
Investment expenditures consists of
A) Purchase of farmland. B) Construction of office buildings. C) Construction of new roads and bridges. D) All of the above.
A value of the absolute price elasticity of demand equal to 0.4 indicates that
A. a 4 percent increase in price leads to a 10 percent decrease in quantity demanded. B. a 1 percent increase in price leads to a 4 percent decrease in quantity demanded. C. a 0.4 percent increase in price leads to a 1 percent decrease in quantity demanded. D. a 10 percent increase in price leads to a 4 percent decrease in quantity demanded.