Lincoln Electric used backloaded compensation
Indicate whether the statement is true or false
False
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Graphically, consumer surplus is measured by: a. the area below the demand curve
b. the area below the demand curve, but above the upward-sloping supply curve. c. the area below the demand curve, but above the market price. d. the area below the market demand curve, but above the supply curve.
Which of the following are important determinants of collusion in pricing games?
A. The number of firms B. History C. Firm size D. All of the statements associated with this question are correct.
The owner of Tie-Dyed T-shirts, a perfectly competitive firm, has hired you to give him some economic advice. He has told you that the market price for his shirts is $20 and that he is currently producing 200 shirts at an AVC of $15 and an ATC of $25. What would you recommend to him?
A. To shut down in the short run, as he is incurring a loss, and to leave the industry in the long run, if there are no changes in economic conditions. B. To continue producing in the short run, as his loss from production is less than his fixed costs, but to exit the industry in the long run if there are no changes in economic conditions. C. To continue to produce in the short run, even though he is earning a loss, and to expand in the future with the hope of increasing market share and total revenue. D. You tell him you cannot make any recommendations until you know what his fixed costs are.
Assuming a long-run aggregate supply curve, a decrease in consumer confidence results in ________ in output and ________ in price level
A) a decrease; no change B) a decrease; a decrease C) an increase; no change D) no change; a decrease