In the Cournot model, a firm maximizes profit by selecting
A) its output, assuming that other firms keep their output constant.
B) its price, assuming that other firms keep their price constant.
C) its output, assuming that other firms will retaliate.
D) its price, assuming that other firms will retaliate.
A
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If the price of a candy bar increases from $1 to $1.50, the ____ will increase
a. producer surplus b. consumer surplus c. opportunity cost of producing a candy bar d. social marginal cost of producing a candy bar
Which of the following is not correct?
a. Economists have two roles: scientist and policy adviser. b. As scientists, economists develop and test theories to explain the world around them. c. Economic policies rarely have effects that their architects did not intend or anticipate. d. As policy advisers, economists use their theories to help change the world for the better.
Price always tends toward its ______________ level.
Fill in the blank(s) with the appropriate word(s).
Consider a society facing the production possibilities curves in the figure shown. What is the most likely cause of a society moving from PPF1 to PPF2?
A. More workers B. Better sewing technology C. Better printing press technology D. A desire to read more books