In order from the most to the least competitive market structure is the perfectly competitive, monopolistically competitive, monopolist and then the oligopolistic market structure.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 2When marginal cost is below average total cost:
a. total cost is falling.
b. total cost is rising.
c. average total cost is falling.
d. average fixed cost is rising.
e. total variable cost is falling.
QUESTION 3Which of the following was true of the United States before 1970?
a. The government was not responsible for promoting employment, output, and purchasing power.
b. Most macroeconomic instability was caused by changes in international oil prices.
c. Most macroeconomic instability was caused by shifts of aggregate demand.
d. Most macroeconomic instability was caused by the depreciation of the dollar.
e. The government was responsible for using monetary policy to correct a depression.
QUESTION 4A major cartel problem is that member firms cheat by attempting to steal customers from one another.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 5At the point where marginal cost equals average variable cost,
a. b and c.
b. marginal cost is rising.
c. average total cost is at its minimum.
d. average variable cost is falling.
e. there is no total cost.
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