Refer to the information provided in Figure 26.7 below to answer the question(s) that follow.
Figure 26.7Refer to Figure 26.7. $700 million is the level of aggregate output that can be sustained in the long run
A. without inflation.
B. only with inflation.
C. only with unemployment.
D. only with deflation.
Answer: A
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If a member of a cartel is the first to alert authorities to the cartel behavior, which of the following will occur to this member firm?
A) The firm will face significant fines. B) The firm's most senior managers will face jail time. C) The firm will not be considered whistle -blowers. D) The firm will not be penalized.
DVDs can be produced at a constant marginal cost of $10 per disk, and Roaring Lion Studios is releasing the DVDs for its last two major films. The DVD for Rambeau 17 is priced at $20 per disk, and the DVD for Schreck 10 is priced at $30 per disk
What are the Lerner indices for these two movies? A) Both equal one. B) 2 and 3, respectively C) 0.5 and 0.67, respectively D) 1 and 2, respectively
Who conducted the study in the 1940s that surveyed entrepreneurs to determine whether they used marginal analysis in choosing their production levels?
a. Milton Friedman b. Fritz Machlup c. Michael Kalecki d. Richard Lester e. William Baumol
AC is lower in the long run than in the short run because
a. prices often fall, allowing savings on purchases. b. inputs can be combined more efficiently in the long run. c. over time the prices of all inputs tend to decrease. d. AFC falls with output over all ranges of output.