A firm's short-run cost functions depend primarily on the firm's production function and the prices of the inputs to production
Indicate whether the statement is true or false
TRUE
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The slope of the demand curve for a normal good must be positive
a. True b. False
Which of the following is a key characteristic of the long-run competitive equilibrium that distinguishes it from the short-run competitive equilibrium?
a. Free entry to reduce short-run profits, or free exit to reduce short-run losses. b. Economic profits are positive, but cannot be negative. c. Marginal revenue is greater than marginal cost. d. Average revenue is less than average cost.
When a decrease in one or more components of private spending completely offsets an increase in government spending, there is
A) incomplete crowding out. B) zero crowding out. C) complete crowding out. D) complete crowding in. E) either c or d
If the wage paid to workers increases, the labor demand curve:
A. will not shift. B. shifts to the left and fewer workers are hired. C. shifts to the right and more workers are hired. D. shifts to the right and fewer workers are hired.