When economic profits exist in the market for a particular product, this is a signal to producers that
A. Consumers would like more scarce resources devoted to the production of this product.
B. The best mix of goods and services is being produced with society's scarce resources.
C. The market is oversupplied with this product.
D. Price is at the minimum of the ATC curve.
Answer: A
Economics
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Figure 4.5 illustrates a set of supply and demand curves for hamburgers. An increase in supply and a decrease in demand are represented by a movement from
A) point d to point a. B) point b to point d. C) point a to point c. D) point d to point b.
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Which of the following is characteristic of a monopolistic competitor?
a. a standardized product b. the ability to influence price c. allocative efficiency d. a horizontal firm demand curve
Economics