Using the above figure, the perfectly competitive firm should shut down if the market price is below
A) P1.
B) P2.
C) P3.
D) P4.
A
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The aggregate production function of Ritland is Y = A × K0.3 × H0.7. The total output produced in Ritland in a certain year was worth $135,000
The technology used in the country improved over the next 10 years while the capital stock and the efficiency units of labor remained approximately the same. Which of the following is likely to be true in this case? A) The Human Development Index of the country is likely to improve. B) The gross domestic product of the country is likely to increase. C) The gross domestic product of the country is likely to decrease. D) The inflation rate in the country is likely to reduce.
The above figure shows the supply and demand curves for high-skilled and low-skilled labor. The figure shows that high-skilled workers earn a wage rate greater than low-skilled workers because
A) the supply of high-skilled labor is greater than the supply of low-skilled labor. B) high-skilled labor has a lower value of marginal product. C) of both the cost of acquiring skills and the differences in the value of marginal products. D) of discrimination.
Are there any cases where a monopoly is beneficial to the economy?
What will be an ideal response?
A monopoly firm is charging the price the market will bear at a level of output where MC equals $6 and is increasing, MR equals $9, and average variable cost equals $5 . To maximize profits, the firm should: a. increase both output and price
b. increase output but decrease the price. c. decrease output and increase the price. d. decrease both output and price.