Which of the following is a likely result of the dramatic decrease in the price of microprocessor chips to computer manufacturers in the last two decades?
A) an increase in the demand for computers
B) a decrease in the supply of diskettes
C) an increase in the supply of computers
D) an increase in the quantity supplied of computers
C
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In order for someone to switch from borrowing to saving when the interest rate falls, it must be that current consumption is an inferior good.
Answer the following statement true (T) or false (F)
A monopolistically competitive firm and a monopoly are alike because both I. face downward sloping demand curves. II. have marginal revenue curves that lie beneath their demand curves. III. can make an economic profit in the long run
A) I only. B) I and II. C) I, II, and III. D) I and III.
The principle of "comparable worth" asserts that people with comparable, if not identical, skills and responsibilities should receive the same pay. If this principle were to become law, it would tend to
a. reduce the problem of the "cost disease of services." b. exacerbate the problem of the "cost disease" of the service sector. c. be irrelevant to the "cost disease" problem. d. eliminate the problem of externalities.
In competitive price-taker markets, if one firm raises its price,
a. others will follow b. that firm will increase its revenues c. that firm will lose revenues because other firms will not follow d. all consumers will be adversely affected e. the market demand curve will shift