A monopolistically competitive firm is currently charging a price of $10 and producing 12,000 units/month. It faces monthly fixed costs of $15,000 and has an average variable cost of $6/unit. In the long run, we would expect:
a. The firm to go out of business
b. The price will rise and output will fall
c. The price will fall and output will fall
d. The price will fall and output will rise
c
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Mark can make 3 tables and 1 chair in a day while John can make 4 tables and 1 chair in a day. Which of the following is true?
A) Mark has a comparative advantage in making tables. B) Mark has an absolute advantage in making tables. C) John has an absolute advantage in making tables. D) John has a comparative advantage in making chairs.
The production function is concave in capital because
A) the contribution to production of each additional unit of capital decreases. B) the marginal product of capital is increasing. C) the marginal product of labor is decreasing. D) the cost of loans increases with their quantity.
Explain how the prisoners' dilemma can be used to examine pricing strategies in an oligopoly
What will be an ideal response?
For how many years does a Federal Reserve governor serve on a term?
a. 7 b. 10 c. 12 d. 14