Answer the following statement(s) true (T) or false (F)
1. Step 2 of the three-step method for monopolistic competition involves finding total cost.
2. If total revenue is greater than total costs at q*, the firm is generating total economic profits.
3. When there are economic losses, firms often enter the market.
4. If many firms producing similar products enter the market, the demand curve for existing firms producing this type of product will become less elastic.
5. If many sellers producing similar products leave the market, the demand curve for existing firms producing this type of product will shift to the right.
1. FALSE
2. TRUE
3. FALSE
4. FALSE
5. TRUE
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Social inequalities disappear when income inequalities are eliminated
Indicate whether the statement is true or false
If Ellie Mae spends her income on possum and biscuits and the price of possum is three times the price of biscuits, then when Ellie Mae maximizes total utility, she will buy
a. equal quantities of possum and biscuits b. three times as much possum as biscuits c. three times as many biscuits as portions of possum d. biscuits and possum until the marginal utility of possum is three times the marginal utility of biscuits e. biscuits and possum until the marginal utility of biscuits is three times the marginal utility of possum