If the demand curve a monopolist faces is perfectly elastic, then the ratio of the firm's price to the marginal cost is
A) 0.
B) 1.
C) 2.
D) None of the above—the answer cannot be determined.
B
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If a firm is a price taker in both the input and output markets, its marginal revenue product of labor is given by:
a. the price of its output times the labor's marginal physical productivity. b. the marginal value product of labor. c. the marginal revenue product of capital times the ratio of the wage rate to the rental rate on capital. d. all of the above.
A phase in the business cycle in which the economy's real GDP declines is known as:
a. a depression. b. a recession. c. a downtick. d. disequilibrium. e. limited demand.
The group within the Federal Reserve System that determines the general course for the nation's money supply is the
a. Federal Monetary Oversight Committee b. Federal Advisory Council c. Board of Governors d. Department of Commerce e. Federal Open Market Committee
Over the past 40 years, real GDP per capita has roughly
a. stayed the same. b. tripled. c. increased by 50 percent. d. doubled. e. declined by 50 percent.