Refer to Figure 12-17. The graphs depicts a short-run equilibrium. How will this differ from the long-run equilibrium? (Assume this is a constant-cost industry.)
A) The price will be higher in the long run than in the short run.
B) The market supply curve will be further to the left in the long run than in the short run.
C) The firm's profit will be lower in the long run than in the short run.
D) Fewer firms will be in the market in the long run than in the short run.
C
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A combination of declining real GDP and rising price level is referred to as
A) a trough. B) deflation. C) stagflation. D) a depression. E) an expansion.
The "lemons problem" exists in the market for goods because
A) sellers tend to try to take advantage of buyers. B) buyers tend to try to take advantage of sellers. C) differences in the quality of the goods being exchanged. D) of moral hazard.
Refer to the above payoff matrix for the profits (in $ millions) of two firms (X and Y) making a decision to advertise or not. Which of the following is the outcome of the dominant strategy without cooperation?
A) Both firm X and firm Y choose not to advertise. B) Both firm X and firm Y choose to advertise. C) Firm X chooses to advertise while firm Y chooses not to advertise. D) Firm X chooses not to advertise while firm Y chooses to advertise.
The ________ is the additional revenue a firm earns by employing one additional unit of labor.
A. marginal labor cost B. per-worker net profit C. average labor revenue D. marginal revenue product of labor