Refer to the graph shown. If the firm increases output from 50 to 60, total revenue will increase:
A. less than total cost, and so profit will decrease.
B. more than total cost, and so profit will increase.
C. more than total cost, and so profit will decrease.
D. less than total cost, and so profit will increase.
Answer: A
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A) many; identical B) many; differentiated C) few; differentiated D) few; identical
Why do economists care about aggregate expenditures?
What will be an ideal response?
A monopolist will hire fewer workers than a perfectly competitive firm because
A) the marginal product curve decreases as additional units of labor are hired for a monopoly but not for a competitive firm. B) there is a variety of employers in a competitive market and only one in a monopoly. C) marginal revenue is greater than price for a monopoly while marginal revenue is equal to price for a competitive firm. D) to sell an additional unit of the good the competitive firm will keep the price the same while the monopolist must lower it on all units sold.
Closed shops are shops that are closed to union members
Indicate whether the statement is true or false