The key feature of ________ is that firms act strategically.
A. perfectly competition
B. an oligopoly
C. a monopoly
D. a natural monopoly
Answer: B
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Human capital is generally acquired through:
A. education, training and experience of workers. B. training, but not academic education. C. job experience, but not training workshops because they are generally specific to certain job types. D. occupational workshops only,because this is where workers attain job focused skills.
When individuals and businesses are permitted to trade freely over a larger market area,
a. wages will decline to the level of the poorest country in the region. b. the monopoly power of business firms will increase. c. they will be able to produce a larger output and consume a more diverse bundle of goods. d. businesses will be able to earn higher profits, but the income levels of individuals will decline.
An increase in the price of cameras results in a decrease in the demand for film. The two products are
a. complements. b. unrelated. c. demand elastic d. substitutes
In reference to the long-run firm competitive equilibrium diagram, which of the following statements is INCORRECT?
A. In the long run, the firm has no incentive to alter its scale of operations. B. In the long run, the firm operates where price, marginal revenue, marginal cost, short-run minimum average cost, and long-run minimum average cost all are equal. C. Because profits must be zero in the long run, the firm's short-run average costs (SAC) must equal P at Qe, which occurs at minimum SAC. D. In the long run, this firm must be part of a constant-cost industry, because its marginal revenue curve is perfectly elastic.