Assume that the graphs show a competitive market for the product stated in the question.
Select the graph above that best shows the change in the digital camera market when the productivity of workers who produce cameras increases.
A. graph (1)
B. graph (2)
C. graph (3)
D. graph (4)
Answer: C
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Under conditions of first-degree price discrimination
A) production will equal that which would exist under perfect competition. B) production will exceed that which would prevail under perfect competition. C) prices will be lower than under perfect competition. D) production will always be lower than under perfect competition.
A division of a firm is
a. a logical sub-organization of the firm b. a level within the firm in which a large degree of autonomy is vested c. a level of hierarchy within a firm that defines the scope of a manager d. all of the above
If a firm is a price taker, then the demand curve it faces is perfectly
a. elastic and above its marginal revenue curve b. elastic and lies on top of its marginal revenue curve c. elastic and below its marginal revenue curve d. inelastic and above its marginal revenue curve e. inelastic and the same as its marginal revenue curve
Which of the following is an example of a normative question?
a. When will the government increase spending on education? b. What effect will the government’s increased spending on education have? c. How much will the government increase spending for education? d. Should the government increase spending for education?