Exit of existing firms will occur in a monopolistic competitive industry until:
A. marginal cost equals zero.
B. marginal revenue equals zero.
C. marginal revenue equals marginal cost.
D. economic profit equals zero.
Answer: D
Economics
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An example of the outlet substitution bias in the calculation of the CPI is a price increase in
A) a trip to Mexico for a couple that had previously taken vacations in Europe. B) a 2014 Honda Civic relative to a 2004 Honda Civic. C) GPS units versus AAA map books. D) textbooks bought through the campus bookstore relative to textbooks via Craigslist. E) olive oil versus vegetable oil.
Economics
In general, risk-averse individuals experience diminishing marginal utility from income.
Answer the following statement true (T) or false (F)
Economics