In the case of the production of electronic calculators, introduced in the United States in the 1960s,
A. a technological breakthrough reduced the input quantities needed to produce them.
B. quantity demanded increased significantly as prices fell.
C. production costs fell with advances in technology.
D. All of the responses are correct.
Answer: D
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Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower
To escape adverse selection and elicit high quality experience goods buyers can
a. offer price premiums to new firms in the market b. seek out unbranded goods c. buy from generic storefronts that have leased temporary space d. secure warranties from warehouse retailers e. none of the above
Both a perfectly competitive firm and a monopolist find that:
A. price and marginal revenue are the same. B. they can sell as many units of output as they want at the market price. C. price is less than marginal revenue. D. it is best to expand production until the benefit and the cost of the last unit produced are equal.
A price-taker faces a demand curve that is:
A. vertical at the market price. B. upward sloping. C. horizontal at the market price. D. downward sloping.