A key difference between a monopoly and a perfectly competitive firm is that the monopolist
A) does not face fixed costs in the short run.
B) has a marginal revenue curve that lies below its demand curve.
C) has no marginal cost curve.
D) faces a perfectly elastic demand for its product.
B
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The phenomenon whereby labor decreases in response to a decrease in the wage rate is called
a. the substitution effect. b. the scale effect. c. derived demand from a change in wage. d. the factor regressivity of labor.
Explicit costs are measured in dollars
Indicate whether the statement is true or false
Recently, the American Medical Association changed its recommendations on the frequency of pap-smear exams for women. The new frequency recommendation was designed to address the family histories of the patients. The optimal frequency should be where the marginal benefit of an additional pap-test:
a. equals zero. b. is greater than the marginal cost of the test c. is lower than the marginal cost of an additional test d. equals the marginal cost of the test e. both a and b.
If exports rise and imports fall, then:
a. GDP will increase. b. GDP will decrease. c. GDP may remain unchanged. d. net exports will fall. e. transfer will rise.