In the above figure, the straight line between the lower left corner and the upper right corner shows
A) perfect equality in income distribution.
B) perfect inequality in income distribution.
C) that wealth rises as income rises.
D) that household size rises as income rises.
Ques. 2Based on the production and revenue data in the above table, what is the marginal product of the 4th worker?
A) 28
B) 6
C) 4
D) 2
Ques. 3How is a monopolistically competitive firm similar to a monopoly firm?
A) Both produce where marginal revenue equals marginal cost.
B) Both will observe entry into the industry if economic profit is positive.
C) Both produce a unique good.
D) Both produce where price equals marginal cost.
Ques. 4In the scenario above, if both firms cheat on the agreement, producing more than the agreed amount, then
A) each firm makes zero economic profit.
B) the outcome is identical to a monopoly.
C) the industry's economic profit is the maximum profit that can be made by the duopoly.
D) each firm makes a greater economic profit than it would make if it complied with the agreement.
Ques. 5The market structure in which a large number of firms compete by making similar but slightly different products is called
A) monopoly.
B) monopolistic competition.
C) perfect competition.
D) oligopoly.
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