Suppose a firm in a competitive market produces and sells 150 units of output and earns $1,800 in total revenue from the sales. If the firm increases its output to 200 units, total revenue will be
a. $2,000.
b. $2,400.
c. $4,200.
d. We do not have enough information to answer the question.
b
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The International Nickel Company of Canada is often cited as an example of monopoly. What was the source of the barrier to entry that gave this firm monopoly power?
A) There were important network externalities in the production of nickel. B) Economies of scale resulted in the company becoming a natural monopoly. C) It was a public enterprise; therefore, the Canadian government blocked entry into the market for nickel. D) control of a key resource
Which of the following emphasizes government spending as a counter cyclical approach to create economic expansion?
a. Keynesian economics b. supply-side economics c. classical economics d. Say’s Law
An individual firm in a perfectly competitive labor market faces: a. a downward sloping labor demand curve and an upward sloping labor supply curve. b. a horizontal labor supply curve and a vertical labor demand curve
c. a horizontal labor supply curve and a downward sloping labor demand curve. d. an upward sloping labor supply curve and a horizontal labor demand curve.
The selection of particular products’ production processes
A. determines the output of other products made with those inputs at the same time. B. is part of the distribution problem in an economy. C. is accomplished without regard to profit in a laissez-faire economy. D. depends upon plans for distribution of the products.