Which of the following statements best defines private costs?
A) They are internal in the sense that the buyer or seller must explicitly take them into account.
B) They are costs borne by people other than those who commit the action.
C) They are synonymous with social costs.
D) They represent explicit costs incurred by producers in the private sector.
Answer: A
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The monopolistically competitive firm maximizes profit by producing to the point at which
A) ATC = AVC. B) MC = MR. C) MR = AR. D) MC = AR.
Which of the following will not result in a shift in the demand curve for the US dollar?
a. an increase of in the income of US residents b. a decrease in the expected rate of inflation in the US c. an increase in the dollar/Eruo exchange rate d. an increase in interest rates in the US e. a decrease in interest rates in the Euro zone