According to the process of creative destruction, at first the entrepreneur will be able to sell the product for
A. a low price because it is not well known.
B. a high price because there is no competition.
C. a fair price because these are contestable markets.
D. at a price of zero until the market is created.
Answer: B
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If black markets help people meet their needs, they will tend to ________ created by the restrictive government policies
A) increase the absolute advantage B) reduce the deadweight losses C) reduce the cooperative surpluses D) increase the tax revenues
If the value of the marginal product of physical capital is $20 and the value of the marginal product of labor is $5, the highest price that a firm should pay for an additional unit of physical capital is:
A) $4. B) $5. C) $20. D) $100.
Explain the influences on the pace of labor productivity growth
What will be an ideal response?
Refer to Figure 12-2. The firm breaks even at an output level of
A) Q1 units. B) Q2 units. C) Q3 units. D) Q4 units.