A monopolistically competitive firm that is incurring a loss will shut down if
A. price is less than marginal cost.
B. price is less than average total cost.
C. revenues are less than variable costs.
D. marginal revenue is less than marginal cost.
Answer: C
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Which of the following is true, according to the law of diminishing marginal utility?
A. The marginal utility of Diane's second Coke is greater than the marginal utility of her third pretzel, other things constant. B. The marginal utility of Diane's second Coke is greater than the marginal utility of Ken's third pretzel, other things constant. C. The marginal utility of Diane's second Coke is greater than the marginal utility of her third Coke, other things constant. D. The total utility of two Cokes is greater than the total utility of three Cokes, other things constant.
Is there one optimal environmental standard for the entire world? If not, how might using trade barriers to enforce country-specific environmental standards reduce overall well being?
What will be an ideal response?
According to the matrix shown, the firms:
This prisoner's dilemma game shows the payoffs associated with two firms, A and B, in an oligopoly and their choices to either collude with one another or not.
A. both have a dominant strategy.
B. both have an incentive to renege on collusion.
C. both have an incentive to compete.
D. All of these statements are true.
Which of the following is false?
a. A production possibilities curve represents the potential total output combinations of any two goods for an economy. b. On a production possibilities curve, we assume that the economy has a given quantity and quality of resources and technology available to use for production. c. If an economy is operating inside its production possibilities curve, it is not at full capacity, and is operating inefficiently. Such an economy's actual output is less than potential output. d. By putting unemployed resources to work or by putting already employed resources to better uses, we could shift out the production possibilities curve.