Refer to the above figure. This firm is operating in the
A) long run since economic profits are greater than zero.
B) long run since economic profits are less than zero.
C) short run since economic profits are greater than zero.
D) short run since economic profits are less than zero.
C
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In a demand-pull inflation, money wage rates rise because
A) a decrease in aggregate demand creates a labor shortage. B) an increase in aggregate demand creates a labor surplus. C) an increase in aggregate demand creates a labor shortage. D) a decrease in aggregate demand creates a labor surplus. E) an increase in aggregate supply creates a labor shortage.
Assume firm X is one of the three largest firms in an oligopolistic industry. Firm X is currently considering a vertical merger with another firm that is the sole supplier of an input used by all of the firms that compete with firm X
If the merger goes through, firm X would be able to operate much like: A) a perfectly competitive firm. B) a monopolistically competitive firm. C) an oligopolist. D) a monopolist.
Suppose there are two parallel highways between two cities with approximately equal traffic. What would you expect to happen if the state began charging tolls to drive on one of those highways?
A. Traffic would decrease on both roads. B. More drivers would drive on the non-toll road, making the toll road less congested. C. More drivers would drive on the toll road making the non-toll road less congested. D. Traffic would remain evenly divided between the two roads as drivers continuously sought the less-congested route.
When the demand curve shifts to the right and supply doesn't change:
A. equilibrium quantity will rise. B. quantity demanded will rise. C. supply will rise. D. equilibrium price will fall.