Consider the following figure that shows a competitive firm on the left panel and a competitive market on the right panel. Assuming all the firms in the market are identical, there are _____ firms in this industry.
a. ?50
b. ?2,000
c. ?40
d. ?60
e. ?2,500
Ans: a. ?50
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A profit maximizing single-price monopolist charges a price equal to
A) average total cost. B) marginal revenue. C) the highest price consumers are willing to pay for the profit maximizing quantity. D) the price necessary for the firm to earn a normal return on its investment.
If the steady-state capital—labor ratio is equal to the Golden Rule capital—labor ratio, then in the steady state
A) output per worker equals investment per worker. B) output per worker equals depreciation per worker. C) investment per worker is as large as possible. D) consumption per worker is as large as possible.
According to the Foreign Corrupt Practice Act (FCPA), a bribe ________ have to be paid to be illegal, and a bribed official ________ need to carry through on the promised action in order for the bribe to be illegal.
A) does not; does B) does; does not C) does; does D) does not; does not
Deadweight loss is not the result of:
a. an efficient market. b. an inefficient market. c. zero consumer surplus. d. zero producer surplus.