when we move from an inefficient point to the origin.

when we move from one point on the frontier to another point on the frontier.

at any one single point on the graph.

when we move from one unattainable point to an efficient point on the frontier.

when we move from the origin to any inefficient point.

can earn positive or negative economic profits, but in the long run, firms have zero economic profits.

can earn positive economic profits, but in the long run, firms have zero economic profits.

can earn negative economic profits, but in the long run, firms have zero economic profits.

can earn positive or negative economic profits, but in the long run, firms have negative economic profits.

will always make economic profits.

must set the price equal to the price charged by other sellers.

is a characteristic held by a monopolistically competitive firm.

has some control over the price it charges.

higher; higher

lower; higher

lower; lower

higher; lower

different; similar; willingness to pay

discounted; large; age

existing; distinct;age

identical; different; willingness to pay

occurs in perfectly competitive markets and monopolistically competitive markets.

may occur in any market structure if the companies advertise to promote the differences in their product.

only occurs in monopolistically competitve markets.

occurs when a company has a monopoly because they are the only one selling the good or service.

the movement along a supply curve when there is a change in demand.

how much more consumers will demand when incomes rise.

the extent to which demand increases as additional buyers enter the market.

none are correct

how sensitive buyers are to a change in price.

the industry will look like monopoly

the industry is probably monopolistically competitive.

the industry is probably perfectly competitive.

the industry is probably a differentiated monopsony.

Profits are maximized when marginal cost equals marginal revenue.

Firms earn positive economic profits in the long run.

Firms earn zero economic profits in the long run.

Price equals marginal revenue.

greater than; less than

less than; less than

less than; greater than

greater than; greater than

a normal good.

a complement

a necessity.

a substitute

an inferior good.

concentration ratios.

capital ratios.

competition ratios.

reserve ratios.

oligopoly, perfect competition, and monopolistic competition

perfect competition and monopolistic competition

perfect competition and monopolistic competition

monopolistic competition

accounting profits become zero because of price wars.

there are more buyers than sellers, giving the buyers market power.

there are more sellers than buyers, giving the sellers market power.

there are so many buyers and sellers that each has no impact on the market price and the market output

has many competitors.

is likely to advertise.

sells a product that is at least slightly different from those of other firms.

has some monopoly power.

consumers will buy more of a product at high prices than at low prices.

the larger the number of buyers in a market, the lower will be product price.

price and quantity demanded are inversely related.

price and quantity demanded are directly related.

will rise in the near future.

is in equilibrium.

is below the equilibrium level.

is above the equilibrium level.

the demand curve to shift to the left, the price to decrease, and the quantity to decrease

the demand curve to shift to the left, the price to decrease, and the quantity to increase

the demand curve to shift to the right, the price to increase, and the quantity to increase

the demand curve to shift to the right, the price to increase, and the quantity to decrease

there will be a movement along the supply curve

the supply curve will shift to the right causing the price to decrease.

the supply curve will shift to the left causing the price to decrease

the supply curve will be upward sloping

increase in demand for orange juice causing the quantity to decrease and the price to increase.

decrease in demand for orange juice causing the quantity to decrease and the price to decrease.

None of the above

increase in supply of Sunny Delight causing the quantity to increase and the price to decrease

increases, and the consumer surplus in the market for almond milk increases.

increases, and the consumer surplus in the market for almond milk decreases.

decreases and the consumer surplus in the market for almond milk decreases.

decreases, and the consumer surplus in the market for almond milk increases.

$175

$50

$100

none of the above

is a characteristic held by a perfectly competitive firm

can sell its product at any price.

must set the price at the market price.

will always make economic profits.

has some control over the price it charges.

monopoly.

perfectly competitive market.

monopolistically competitive market.

colluding.

predatory pricing unit.

efficient strategy.

dominant strategy.

equilibrated strategy.

surplus maximization strategy.

efficient strategy.

law of positive statements

principle of comparative advantage

law of demand

production possibilities frontier (PPF)

concept of absolute advantage

at all prices above that shown by the intersection of the supply and demand curves.

whenever the demand curve is downsloping and the supply curve is upsloping.

if there is no surplus of the product.

if the amount producers want to sell is equal to the amount consumers want to buy.

number of units that consumers want to buy at the market price.

total revenue earned from producing and selling a good.

difference between the price the seller receives and the willingness to sell it.

difference between the willingness to pay for a good and the price.

difference between the willingness to pay for a good and the willingness to sell it.

external benefit.

dead-weight loss

spending surplus.

tax revenue.

consumer surplus.

elastic or inelastic.

complements or substitutes.

normal or inferior.

luxuries or necessities.

-3.4

3.4

11.8

-2

6/7 vests

7/6 shirts

7/6 vests

6/7 shirt

he is more efficient at producing it

he has a lower opportunity cost of producing it

he can produce it using fewer materials

he is able to produce more than other producers

the price that is being charged is higher than what is socially optimal because the government imposed a corrective tax.

the quantity produced in the market is too low because producers aren’t including all of the costs when deciding how much to produce

the quantity produced in the market is too high because producers aren’t including all of the costs when deciding how much to produce

the external cost should be added price that is charged