Refer to Figure 23.5 for a perfectly competitive firm. Which of the following is not true for this firm at a price of $200?
A. The firm is using the fewest resources possible to produce each unit of output.
B. The price is a reflection of the highest-valued good that could have been produced with the resources the firm used for the last unit it produced.
C. The firm is practicing marginal cost pricing.
D. The firm should leave this market in an effort to earn economic profits.
Answer: D
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The short run is a time period during which
A) some of the firm's resources are fixed. B) all of the firm's resources are fixed. C) all of the firm's resources are variable. D) the fixed cost equals zero. E) the firm cannot increase its output.
In the classical model, the government needs to worry about employment
a. True b. False
Refer to the information provided in Figure 3.7 below to answer the following question(s).
?Figure 3.7Refer to Figure 3.7. A movement from Point A to Point B on demand curve D2 would be caused by a(n)
A. increase in the price of pizza. B. decrease in income, assuming pizza is a normal good. C. decrease in the price of burritos, assuming that pizza and burritos are substitutes. D. decrease in the price of pizza.
Refer to Figure 1A.1. If the hours worked per week are 30, the income per week is
A) 50. B) 100. C) 150. D) 200.