The law of diminishing marginal utility is consistent with the consumer behavior that produces a negatively sloped demand curve
a. True
b. False
Indicate whether the statement is true or false
True
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If a cartel firm is producing a quantity at which the marginal revenue is $4 and the marginal cost is $4, the firm ________.
A) is producing less than the agreed upon quantity B) is producing the agreed upon quantity C) has erected a barrier to entry D) has acted in self-interest
An increase in the average price level will lead to a decrease in the demand for reserves
a. True b. False Indicate whether the statement is true or false
If asked to comment about a new tax on cotton collected from growers who do not grow their plants in the shade of other plants, an economist with no particular expertise in cotton growing might still note that
a. the price received by these cotton producers will fall by the full amount of the tax. b. the price paid by consumers of this cotton will rise by the full amount of the tax. c. the legal incidence of the tax does not determine who bears the burden of the tax. d. the tax was imposed on the wrong party, it should have been placed on buyers.
Which of the following is a short-run adjustment?
A. Three new firms enter the computer chip industry. B. A firm hires six new workers. C. The number of farms in Kansas increases by 10%. D. A firm opens two new plants.