In a long-run equilibrium, firms in both perfectly competitive markets and monopolistically competitive markets produce a quantity below the efficient scale of production
a. True
b. False
Indicate whether the statement is true or false
False
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If a tax rate is constant as income rises, the tax is proportional
Indicate whether the statement is true or false
The DeBeers Company is a profit-maximizing monopolist that exercises monopoly power in the distribution of diamonds. If the company earns positive economic profits this year, the price of diamonds will:
A. exceed both the marginal cost and the average total cost of diamonds. B. be equal to the average total cost of diamonds. C. be equal to the marginal cost of diamonds. D. exceed the marginal cost of diamonds but be equal to the average total cost of diamonds.
Sonia was a great bookkeeper 20 years ago, then left the workforce to stay home and raise her children. Now that they're in college, Sonia looks for another bookkeeping job, but they all require computer skills that she doesn't have. Sonia would be considered:
A. frictionally unemployed. B. seasonally unemployed. C. structurally unemployed. D. Sonia is not in the labor force.
If we assume competitive labor markets, the supply curve of labor when the firm is a monopoly is
A) upward sloping. B) vertical. C) horizontal. D) downward sloping.