Figure 16-8 The Figure Is Drawn for a Monopolistically-Competitive Firm

question 122

Multiple Choice

Figure 16-8
The figure is drawn for a monopolistically-competitive firm.

-Refer to Figure 16-8.Efficient scale is reached

• A) at 100 units.
• B) between 100 and 133.33 units.
• C) at 133.33 units.
• D) beyond 133.33 units.

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Definitions:

Phillips Curve

Curve showing inverse relationship between the unemployment rate and the rate of inflation.

Laffer Curve

Shows that at very high tax rates, very few people will work and pay taxes; therefore government revenue will rise as tax rates are lowered.

General Price Level

indicates the average of the current prices of all goods and services in the economy at a specific time.

Money Supply

The aggregate of all funds accessible in an economy, counting cash, coins, and checking and savings account balances, at a certain time.