The behavior of the monopolistic firm
A. maximizes the benefits to consumers, given the resources available to the economy.
B. increases output in order to raise prices in the short term.
C. results in excess capacity and inefficiency.
D. results in entry into the market by other firms.
Answer: C
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If we assume only one factor (labor), we can demonstrate on the PPF the opportunity cost of producing less of one good and more of the other good by:
a. taking the sum of the marginal products of labor for the two goods. b. taking the difference of the marginal products of labor for the two goods. c. taking the ratio of the marginal products of labor for the two goods times -1. d. taking the average of the marginal products of labor for the two goods.
During the period between 1960 and 1968 the poverty rate _______.
Fill in the blank(s) with the appropriate word(s).