Which of the following statements about a monopolistically competitive firm is FALSE?
A) It tries to differentiate its product from that of competitors.
B) It may earn short-run economic profits.
C) It produces the quantity at which MC=MR.
D) It sets price like a perfectly competitive firm.
Answer: D
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The demand for gold increases, other things equal, when
A) the market for silver becomes more liquid. B) interest rates are expected to rise. C) interest rates are expected to fall. D) real estate prices are expected to increase.
Which of the following is not an example of derived demand?
a. As more high school graduates go on to college, more professors are hired. b. As consumers buy more computers, they demand more powerful computers as they become available. c. As people let their hair grow longer, fewer people become barbers. d. As people buy more tennis shoes instead of sandals, they buy more shoe laces. e. Increased demand for overnight delivery speeds up orders for new delivery trucks.
Moving along a budget line, the prices of both goods:
a. vary and the consumer's budget is held constant. b. are held constant and the consumer's budget varies. c. and the consumer's budget are held constant. d. and the consumer's budget vary.
The Real GDP of country X doubled in 10 years. It follows that
A) the per-capita Real GDP doubled during this time, too. B) the per-capita Real GDP remained stable during this time. C) the per-capita Real GDP fell during this time. D) disposable income also doubled during this time. E) none of the above