Suppose Blu-ray discs are sold in a perfectly competitive market. The current market price of Blu-ray discs is $15. If at the current level of production of compact discs you calculate the marginal cost to your company is also $15, and that AVC is rising, in the short run your company should:
A. produce more Blu-ray discs.
B. produce fewer Blu-ray discs.
C. continue producing the current level of Blu-ray discs.
D. raise the price of its Blu-ray discs.
Answer: C
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Suppose the elasticity of labor demand is 1.4. Then a decrease in the wage rate will:
A. Decrease total wage income B. Increase total wage income C. Have no impact on total wage income D. Have an indeterminate impact on total wage income
The size of an organization and the proportion of its workers in managerial roles is directly proportional
Indicate whether the statement is true or false
The lack of success among monopolistic competitive and oligopolistic firms to become monopolies can be attributed primarily to
a. lack of business skills b. lack of financing c. failure to maximize profit d. inability to establish effective barriers to entry e. inefficient production methods
Economic growth is best defined as an increase in:
A. either real GDP or real GDP per capita. B. nominal GDP. C. total consumption expenditures. D. wealth in the economy.