If the price of a DVD falls,
i. the demand curve for DVDs will shift rightward.
ii. the demand curve for DVDs will not shift.
iii. there will be a movement along the demand curve for DVDs.
A) i only
B) ii only
C) iii only
D) ii and iii
E) i and iii
D
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If a firm is in the short run,
a. all its resources are variable. b. it is planning its output for six months. c. it is not possible for a firm to be efficient. d. at least one of the firm’s resources cannot be varied.
By comparing the value of marginal product with the marginal cost per input, a firm can find the:
A. cost-maximizing quantity to hire. B. revenue-maximizing quantity to hire. C. output-maximizing quantity to hire. D. profit-maximizing quantity to hire.
Rachel left her job as a graphic artist, where she earned $42,000 per year, to open her own graphic arts firm. Her implicit costs of the new business include:
A. both the expenses incurred for office space, equipment, and supplies and her forgone salary of $42,000 per year. B. only her forgone salary of $42,000 per year. C. neither the expenses incurred for office space, equipment, and supplies nor her forgone salary of $42,000 per year. D. only the expenses incurred for office space, equipment, and supplies.
Which of the following is not a characteristic of the structure of perfectly competitive markets?
A. Each individual firm is small in size relative to the overall market. B. Few sellers. C. Homogeneous product. D. Easy, low cost entry and exit.