If at the current level of product-specific service, consumers' value at $50 and the cost of retailers to provide the services is $55, which of the following is true?
A) the profit-maximizing level of profit-maximizing services is less than the current level
B) the profit-maximizing level of profit-maximizing services is greater than the current level
C) the profit-maximizing level of profit-maximizing services is exactly double the current level
D) the profit-maximizing amount of product-specific services is being offered.
A) the profit-maximizing level of profit-maximizing services is less than the current level
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Assume the marginal revenue from each additional unit of a good sold is 0. In this case, we can conclude that demand for the good is:
A) unit elastic B) perfectly elastic. C) perfectly inelastic. D) relatively inelastic.
Assume that the market demand for a good is p = 100 - Q. Assume that the marginal product of labor is 1 and the firm can get all the labor it needs at a wage equal to 5
Compare the quantity of labor hired if the output market is competitive with the quantity hired if the output market is a monopoly.
For any given output level, a firm's long-run costs
a. are always greater than or equal to its short-run costs. b. are usually greater than or equal to its short-run costs except in the case of diminishing returns to scale. c. are always less than or equal to its short-run costs. d. are usually less than or equal to its short-run costs except in the case of diminishing returns to scale.
What type of economic system is commonly described as being controlled by an "invisible hand"?
a. A traditional economy. b. A command economy. c. A market economy. d. A communist economy.