The above figure illustrates a perfectly competitive firm. If the market price is $10 a unit, to maximize its profit (or minimize its loss) the firm should
A) shut down.
B) produce between 10 and less than 30 units.
C) produce 30 units.
D) produce more than 30 units and less than 40 units.
E) produce 40 units.
A
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Which of the following is a capital resource?
A. a computer programmer B. silicon (sand) used to make computer chips C. a corporate bond issued by a computer manufacturer D. a piece of software used by a firm
The total value of capital in the United States is around
A) $50 trillion. B) $10 trillion. C) $79 trillion. D) $100 trillion. E) $145 trillion.
A monopolist has determined that at the current level of output the price elasticity of demand is -0.15. Which of the following statements is true?
A) The firm should cut output. B) This is typical for a monopolist; output should not be altered. C) The firm should increase output. D) None of the above is necessarily correct.
If wage rates fall at the same time that labor productivity increases, what is the effect on short-run aggregate supply (SRAS)?
A) SRAS falls. B) SRAS remains constant. C) SRAS rises. D) SRAS may rise, fall, or remain constant.