Monopolies misallocate resources because
A) price does not equal marginal cost.
B) price does not equal average variable cost.
C) marginal cost does not equal average total cost.
D) profits are usually positive.
A
Economics
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Investment spending is countercyclical
Indicate whether the statement is true or false
Economics
Walter builds birdhouses. He spends $5 on the materials for each birdhouse. He can build one in 30 minutes. He is semi-retired but earns $8 per hour at the local hardware store. He can sell a birdhouse for $20 each. An accountant would calculate the total cost for one birdhouse to be
a. $5. b. $8. c. $9. d. $13.
Economics