Refer to the graph shown. If a natural monopolist were not regulated, the firm would charge:
A. P1.
B. P2.
C. P3.
D. P4.
Answer: A
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Suppose the working age population in Tiny Town is 100 people. If 25 of these people are NOT in the labor force, the ________ equals ________
A) unemployment rate; 25/100 × 100 B) unemployment rate; 25/75 × 100 C) labor force; 75 D) labor force; 25/100 × 100
Which of the following is not held constant along a firm's demand curve for labor?
A) the quantity of other inputs used by the firm B) the price of the product produced by the firm C) the wage rate D) changes in technology
Assume that firms A and B have the same minimum efficient scale of operation and, at current production levels, both firms are incurring the same average costs of production. However, firm A's output is 5 times larger than firm B's output
How is this possible?
Maximizing the present value of all future profits is the same as maximizing current profits if the growth rate in profits is:
A. less than the interest rate. B. greater than the interest rate. C. not constant over time. D. equal to the interest rate.