A binding price floor i. causes a surplus. ii. causes a shortage. iii. is set at a price above the equilibrium price. iv. is set at a price below the equilibrium price
a. (i) only
b. (iii) only
c. (i) and (iii) only
d. (ii) and (iv) only
c
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Walmart is known for entering small towns and driving out its competitors. Using the theory of countervailing power, explain why the growth of Walmart may have actually increased, rather than decreased, efficiency in the United States
Suppose a firm uses 200 units of capital and 1,000 workers to produce 10,000 units of output. When the firm employs 3,000 workers and uses 600 units of capital, output increases to 45,000 units. This firm exhibits:
A. increasing returns to scale. B. decreasing returns to scale. C. constant returns to scale. D. diminishing marginal returns.
In the production function Real GDP = T (L, K), the T represents the _____________ coefficient, the L represents ________________ and the K represents _______________
A) tax; labor; capital B) technology; labor; capital C) technology; labor; knowledge D) technology; livestock; knowledge
An oligopolist charges a lower price than the short-run profit-maximizing price. How does this affect the firm’s productive efficiency?
a. The firm fails at productive efficiency because P 1 exceeds the minimum ATC.
b. The firm fails at productive efficiency because P 1 is less than the minimum ATC.
c. The firm achieves productive efficiency because P 1 exceeds MC.
d. The firm achieves productive efficiency because P 1 is less than MC.