If firms in a competitive industry independently operate to maximize profits, the ________ are eventually equalized across the firms
A) total costs
B) marginal costs
C) profits
D) revenues
B
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As output increases, diseconomies of scale
a. lead to rising long-run average costs b. lead to declining long-run average costs c. lead to rising short-run average total costs d. lead to declining short-run total cost e. means the law of diminishing marginal returns is affecting production
As a group, oligopolists earn the highest profit when they
a. achieve a Nash equilibrium. b. produce a total quantity of output that falls short of the Nash-equilibrium total quantity. c. produce a total quantity of output that exceeds the Nash-equilibrium total quantity. d. charge a price that falls short of the Nash-equilibrium price.
When a union bargains successfully with employers, in that industry,
a. both wages and unemployment increase. b. wages increase and unemployment decreases. c. wages decrease and unemployment increases. d. both wages and unemployment decrease.
Actual GDP will be below potential GDP:
A. when the economy is at full employment. B. during an economic boom. C. when resources are fully utilized. D. during a recession.