A monopolist who owned the entire supply of a scarce resource would set a price
a. at about the competitive level.
b. lower than the competitive level.
c. higher than the competitive level but lower than what a monopoly producer of a non-scarce good would.
d. above that which would be chosen by a monopoly producer of a nonscarce good.
a
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In the early 1990s Intel produced a 486 microchip for personal computers that contained a math co-processor that increased its speed of performing calculations and other operations
After a time Intel decided to disable the coprocessor on large numbers of their chips before sending them out for shipment and sale. What could have been the motive of Intel to deliberately reduce the quality of some of its chips?
Technological change that increases the marginal productivity of labor in the classical model would cause
a. labor demand, output and the price level to rise. b. labor demand to fall, the price level to fall, and output to rise. d. labor demand, output and employment to rise. c. output to rise but labor demand to fall.
A decrease in the price of a foreign currency is represented graphically as
a. rightward movement along the demand curve for that currency b. an upward shift of the demand curve c. a downward shift of the demand curve d. a horizontal line e. a vertical line
One argument for trade barriers is that U.S. producers pay higher wages than many of their foreign counterparts and that trade restrictions are necessary to protect U.S. workers from unfair competition brought about by low wage rates abroad. Is this a valid argument for protection?
What will be an ideal response?