Which of the following is true about the differences between M-form and U-form firms?
a. As M-form firms are more diversified, it is more difficult for the management to acquire and compare information about products and locations than a U-form firm.
b. A U-form firm can better incentivize managers than M-form firms.
c. In an M-form firm the interests of executives in product or geographic
divisions can bebetter aligned with those of shareholders compared to a U-form firm.
d. M-form firms usually operate in fewer markets than U-form firms.
C
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Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential
In the figure above, when production is 3 units with a price of $3, the consumer surplus equals
A) a + b. B) a + b + f + g. C) a + b + f + g + h + l. D) a + b + f + g + h + l + i + m.
An increase in the natural rate of unemployment shifts the long-run Phillips curve to the right
a. True b. False Indicate whether the statement is true or false
Below, the graph on the left shows the short-run cost curves for a firm in a perfectly competitive market, and the graph on the right shows the current market conditions in this industry. What is the maximum amount of profit the firm can earn?
A. $150 B. $80 C. $50 D. $40