Suppose a monopolist's demand curve lies below its average variable cost curve. The firm will:
a. stay in operation in the short-run.
b. earn an economic profit.
c. earn an economic profit in the long run.
d. shut down.
d
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The main reason for the high price of antiques is that
A. supply is relatively inelastic and demand tends to increase over time. B. supply is relatively elastic and demand tends to increase over time. C. demand is relatively inelastic and supply tends to increase over time. D. demand is relatively elastic and supply tends to increase over time.
Which of the following shifts both the short-run aggregate supply curve and the long-run aggregate supply curve?
I. changes in the size of the labor force II. changes in the money wage rate III. changes in the quantity of capital A) II only B) both I and II C) both I and III D) I, II and III
Consider the following game in which two firms decide how much of a homogeneous good to produce
The annual profit payoffs for each firm are stated in the cell of the game matrix, and Firm A's payoffs appear first in the payoff pairs: Firm B - low output Firm B - high output Firm A - low output 300, 250 200, 100 Firm A - high output 200, 75 75, 50 What are the dominant strategies in this game? A) Both firms produce low levels of output B) Both firms produce high levels of output C) Firm A's dominant strategy is to produce low levels of output, but Firm B does not have a dominant strategy. D) Firm B's dominant strategy is to produce low levels of output, but Firm A does not have a dominant strategy. E) Neither firm has a dominant strategy
Wage differentials between industries can be affected by productivity differences
Indicate whether the statement is true or false