Compared to a single-price monopoly, the price charged by a perfectly competitive market with the same costs
A) is higher than the monopoly's price.
B) is the same as the monopoly's price.
C) is lower than the monopoly's price.
D) could be higher than, lower than, or the same as the monopoly's price.
C
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The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
Refer to the table above. Assuming that the market consists of only these three sellers, what is the market supply when the price is $2?
A) 39 units B) 52 units C) 89 units D) 41 units
Minimax Motors, a car manufacturer, spent $300 million on the establishment of a new plant that includes 25 assembly lines. The new plant has 470 employees that work 5 days a week to produce 1,200 cars per week. If Minimax Motors wants to increase its output to 1,400 cars per week immediately, it should: a. increase the number of assembly lines in its plant
b. increase the number of workers in the plant. c. increase the number of workers as well as the number of assembly lines in the plant. d. open a new plant with more assembly lines and workers.
If the economy were producing at point D and moved to point C the opportunity cost in terms of lost production of outboard motors would be
A. 2 units of outboard motors.
B. 4 units of outboard motors.
C. 12 units of outboard motors.
D. 11 units of robots.