Most firms produce where marginal revenue is equal to marginal cost, but firms in a monopolistically competitive industry instead choose output where average cost is equal to demand.
Answer the following statement true (T) or false (F)
False
Rationale: While this may be the equilibrium outcome, the firms still choose output where marginal revenue is equal to marginal cost.
Economics
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Which of the following economic changes will decrease household expenditures?
a. Population growth b. Lower income taxes c. An appreciation of the domestic currency d. Increased consumer confidence e. A higher domestic price level
Economics
During the current year, Jessica sold her house, built two years ago, to Kim for $175,000 . Kim then sold the house to Dave for $185,000 . How much does GDP increase due to these transactions?
a. $370,000 b. $175,000 c. $185,000 d. $360,000 e. $10,000
Economics