Giuseppe's Pizza is a perfectly competitive firm. The firm's costs are shown in the table above. If the market price is $22, the firm will
A) shut down.
B) leave the market in the long run.
C) stay in the market in the long run.
D) incur an economic loss.
C
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An economist from which of the following schools of thought would most likely say - "An increase in government expenditure will only increase inflation, because the aggregate supply curve is vertical"?
a. Neoclassical economics b. Traditional classical economics c. New Keynesian economics d. Keynesian economics e. Marxist economics
Suppose that the marginal benefit of an activity is less than the marginal cost, then:
A. the net benefit would be increased by reducing the amount of the activity. B. the net benefit would be decreased by reducing the amount of the activity. C. the net benefit would be increased by increasing the amount of the activity. D. there can be no marginal improvement by changing the amount of the activity.
In equilibrium, if both uncovered and covered interest parity hold, what condition should exist?
a. World interest rates will be equal. b. Rates of inflation will equalize. c. The forward rate will equal the expected future spot rate. d. The forward rate will decrease as the spot rate rises.
The highest concentration ratio
A. is in Industry X.
B. is in Industry Y.
C. is in Industry Z.
D. cannot be determined.