In the short run, a perfectly competitive firm will make an economic profit as long as
A) it maximizes its profit.
B) P > AVC.
C) P > AFC.
D) P > ATC.
D
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The discovery of a new oil field has attracted several new investors to Oiland. How will this affect Oiland's labor demand curve?
What will be an ideal response?
If the MPC is 0.5, then the spending multiplier must be:
A. 1.2. B. 2. C. 2.25. D. 2.5.
Which of the following statements is correct? Monopolies are socially inefficient because they (i) charge a price above marginal cost. (ii) produce too little output. (iii) earn profits at the expense of consumers. (iv) maximize the market's total surplus
a. (iii) only b. (iii) and (iv) only c. (i) and (ii) only d. (i), (ii), (iii), and (iv)
The figure given below represents the effects in the labor markets due to migration. Here the world has been divided into a high-income "North" (left panel) and a low-income "South" (right panel). Dn and Sn are the labor demand and the labor supply curves in North. Ds and (Sr + Smig) are the labor demand and pre-migration labor supply curves in South. Sr is the post-migration labor supply curve in South. The value c is the cost of migrating.
After migration of the workers, the workers in North earn ________ per hour and South workers earn ________ per hour.
A. $6.75; $3.00 B. $8.00; $3.00 C. $8.00; $4.25 D. $6.75; $4.25