The long-run supply curve in a competitive market is upward-sloping
Indicate whether the statement is true or false
False. The shape of the long-run supply curve will depend on how similar the firms are and on the relationship between factor prices and total industry output.
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A movie monopolist sells to students and adults. The demand function for students is QdS = 600 - 100P and the demand function for adults is QdA = 1,200 - 100P. The marginal cost is $2 per ticket. Suppose the movie theater can price discriminate. What is the monopolist's profit from both students and adults?
A. $2,900 B. $2,500 C. $2,100 D. $4,900
Actual experiments show that negative income taxes destroy work incentives
a. True b. False Indicate whether the statement is true or false
When enterprises get more funds from government subsidies provided by central planners and less from consumers, they will have incentive to
A) spend more time catering to the views of consumers than if they were operating in an unsubsidized, competitive market. B) spend more time trying to satisfy consumers and very little time trying to satisfy politicians. C) spend more time trying to influence politicians and less time trying to reduce costs and please customers. D) produce more efficiently than if they were operating in a competitive market.
If a model assumes that people take into account other people's interests, it is probably a:
A. traditional model. B. natural model. C. heuristic model. D. behavioral model.