Which of the following statements is TRUE for a monopolistically competitive firm in the long run?
A) P = ATC > MR
B) MC > P > ATC
C) P > MC > ATC
D) P = MC = MR
A
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According to the circular flow model, all else constant, an increase in government spending should cause an increase in spending, income, and production in the economy
Indicate whether the statement is true or false
Which statement is true?
A. Industry X is more concentrated than Industry Y.
B. Industry X is more concentrated than Industry Z.
C. Industry Z is more concentrated than Industry X.
D. Industries X, Y, and Z have the same concentration ratio.
Workers who demand a wage that is higher than the equilibrium wage
A. Must belong to a union in order to secure a job. B. Will never benefit from joining a union. C. Will find it difficult to secure a job. D. Will easily secure a job.
A new fad dramatically increases the demand for donut-holes, the leftovers produced from donut production. According to economic theory, one would expect
A. the price of donuts to fall. B. that one cannot tell. C. the price of donuts to stay the same. D. the price of donuts to rise.