Which of the following features is common to both perfectly competitive markets and monopolistically competitive markets?
A. Prices are above marginal costs in the long run.
B. Long-run profits are zero.
C. Prices are equal to marginal costs in the long run.
D. Firms produce homogeneous goods.
Answer: B
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If the marginal cost of producing a television is constant at $200, then a firm should produce this item
A) as long as the marginal benefit it receives is just equal to or greater than $200. B) only if the marginal benefit it receives is greater than $200 plus an acceptable profit margin. C) as long as its marginal cost does not rise. D) until the marginal benefit it receives reaches zero.
The productivity of workers can depend upon which of the following?
A. Physical capital B. population growth C. Number of businesses established D. All of these are determinants of productivity.
When government expenditures exceed government revenues a budget surplus will exist
Indicate whether the statement is true or false
Which of the following scenarios is an example of the tragedy of the commons?
a. Extensive fishing of Bluefin Tuna in the Atlantic Ocean b. Overuse of a private swimming pool for recreation c. High demand for burgers from Burger King d. High demand for online movie streaming on Netflix