The more inelastic the consumer demand for the final product, the
A) greater will be the economic profit in a competitive market.
B) greater the impact on employment from a change in the wage rate.
C) more inelastic the demand for labor producing the product.
D) more responsive the output demand to a change in the price of labor.
Answer: C
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In an oligopolistic market there is likely to be
A. neither allocative nor productive efficiency. B. little consideration of the actions of rival firms. C. price-taking behavior on the part of firms. D. homogeneous but not differentiated products.
If the population increases and input prices decrease, the equilibrium quantity of a product will definitely increase
Indicate whether the statement is true or false
A firm's producer surplus equals its economic profit when
A) average variable costs are minimized. B) average fixed costs are minimized. C) marginal costs equal marginal revenue. D) fixed costs are zero. E) total revenues equal total variable costs.
When making the decision to invest, the evaluation of the expected flow of future productive services that the investment project being considered will yield is an important consideration. This statement is accurate for
A. firms and households, but not for governments considering an investment project. B. firms, households, and governments. C. firms and governments, but not for households considering an investment project. D. firms, but not for governments and households considering an investment project.