In the above figure, the competitive firm will employ the quantity of labor
A) equal to Lc.
B) equal to Lb.
C) less than Lb.
D) greater than Lc.
B
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Frequently, a public good can be adequately provided by private action when its benefits are
a. concentrated among a small number of people. b. equally valued by everyone. c. widespread. d. greater than its costs.
In what way is the result of a subsidy given to either demanders or suppliers similar to the result of a price ceiling?
a. The amount that consumers pay for the good will be less than they previously paid b. The amount of the good that will be traded in the market will be less than previously traded c. both price ceilings and subsidies create excess demand d. The amount that consumers pay for the good will be greater than they previously paid e. both price floors and excise taxes create excess supply
Briefly explain what failure to properly use all capital equipment would do to a production possibilities curve and what that means for the economy.
What will be an ideal response?
How is monopolistic competition different from a monopoly?
a. Monopolistic competition has difficult entry; a monopoly has easy entry. b. A monopoly has strong control over a product; monopolistic competition has little control over a product. c. Monopolistic competition has similar (but not identical) brands; a monopoly has one brand. d. A monopoly has zero long-run economic profits; monopolistic competition has high long-run economic profits.