Some economies have production possibilities frontiers that are bowed inward toward the origin.
Answer the following statement true (T) or false (F)
True
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The marginal physical product of labor in Figure 21.1 is negative for the
A. Fourth worker. B. Fifth worker. C. Third worker. D. Sixth worker.
When there is a shortage of a product in an unregulated market, there is a tendency for
A. price to rise. B. quantity supplied to decrease. C. price to fall. D. quantity demanded to increase.
If Bertrand price competitors incur recurring fixed costs, it will still be a Nash equilibrium for price to equal marginal cost.
Answer the following statement true (T) or false (F)
Suppose tennis shoes cost $50 per pair and firms supply 50,000 pairs of shoes. If the price decreases to $45 and firms decide to supply 48,000, the elasticity of supply equals
A) 0.0025. B) 0.04. C) 2.63. D) 0.39.