For a linear demand curve, demand is ____ elastic at _____ prices.
B. less; higher
C. more; lower
D. constantly; all
A. more; higher
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Which of the following is TRUE regarding a perfectly competitive firm?
A) The firm can charge a lower price than its competitors and thereby sell more output and increase its profits. B) The firm always earns a normal profit. C) The firm's marginal revenue continually decreases. D) The firm's minimum efficient scale is small relative to the market demand.
In the long-run equilibrium in a perfectly competitive market,
A) the firms make an economic profit. B) the firms' owners make a normal profit. C) the average total cost is maximized. D) marginal cost is at a minimum.
Why is the unemployment rate never zero, even at full employment?
What will be an ideal response?
The world price of a good is
a. the price paid by consumers in all nations b. the price at which it is traded internationally c. the price paid in U.S. dollars d. the price paid in foreign currency e. the terms of trade for each nation