Which of the following will lead to an increase in the firm's short-run demand for labor?
A) a decrease in the price of the final product
B) an increase in price of the final product's substitute good
C) an improvement in labor productivity
D) a decrease in the number of buyers for the final product
Answer: C
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Happy Cows is bidding on a large piece of farm equipment to process their dairy products. The managers of Happy Cows have estimated the additional profit Happy Cows will earn from the piece of equipment and have valued the equipment at $125,000. Happy Cows' value of the farm equipment is ________.
A) a common value B) an independent private value C) a public value D) a correlated value
A monopoly firm operates with declining average cost. If regulators impose marginal cost pricing, the market will
A. remain a monopoly but behave like a perfectly competitive industry. B. become perfectly competitive. C. be entered by additional firms but will not necessarily become perfectly competitive. D. maximize consumer surplus.
In the long run, a monopolistic competitor will produce to the point at which
A) average total costs are at the minimum of possible ATC. B) average total costs are higher than the minimum of possible ATC. C) resources are used at the lowest possible cost. D) at the lowest possible price.
Economists normally assume people's preferences should be
a. respected. b. adjusted. c. overruled. d. ignored.