A perfectly competitive firm produces so that its marginal cost equals the price
Indicate whether the statement is true or false
TRUE
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If two large firms from different industries merge,
a. industry concentration rises b. industry concentration falls c. the total assets of the top 200 firms in the country will stay the same d. industry concentration rises in one market and falls in the other e. industry concentration is not affected
Suppose that quantity demand rises by 10% as a result of a 15% decrease in price. The price elasticity of demand for this good is
a. inelastic and equal to 0.67. b. elastic and equal to 0.67. c. inelastic and equal to 1.50. d. elastic and equal to 1.50.
Technological knowledge
a. is the same thing as human capital. b. can be discovered but it can never be kept secret. c. is a determinant of productivity. d. does not play a role in the relationship that economists call the production function.
The natural rate of unemployment will rise for all of the following reasons EXCEPT:
A) more generous terms for unemployment compensation. B) an increase in union membership. C) an increase in labor productivity that translates into greater demand for labor. D) a surge in the number of young and inexperienced workers.