If a monopolistically competitive firm is suffering losses in the short run:
A. the exit of competing firms will shift the firm's demand to the right.
B. the exit of competing firms will shift the firm's demand to the left.
C. the exit of competing firms will cause price to drop, but not affect the firm's demand curve.
D. the exit of competing firms will cause price to rise, but not affect the firm's demand curve.
A. the exit of competing firms will shift the firm's demand to the right.
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The following table shows the relationship between the speed of a computer's CPU and its benefits and costs. Assume that all other features of the computer are the same (that is, CPU speed is the only source of variation), and only the CPU speeds listed below are available for purchase.CPUGHzTotal BenefitMarginal BenefitTotal CostsMarginal Costs2.0$1,000 $900 2.5$1,400 &1003.0 $300$1,200 3.5$1,900 &1,500 4.0$2,000 &400The marginal benefit of upgrading from a 2.0GHz computer to a 2.5GHz computer is:
A. $400. B. $1,400. C. $1,000. D. $100.
Explain why Adam Smith believed that competitive markets are a key component of achieving the gains from the invisible hand.
What will be an ideal response?
The optimal combination of goods for a consumer to purchase is shown by
a. any intersection of the indifference curve and the budget line. b. the point where the budget line touches the vertical axis. c. a point of tangency between the budget line and the indifference curve. d. the point at which the indifference curve parallels the horizontal axis. e. the intersection of two indifference curves.
The labor share of total income is the proportion of total income earned by
A. All workers. B. The nonunionized workforce. C. The unionized workforce. D. All households.