In the long run, new firms can enter an industry and so the supply elasticity tends to be:
A. more elastic than in the short run.
B. less elastic than in the short run.
C. perfectly inelastic.
D. perfectly elastic.
A. more elastic than in the short run.
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In the circular flow model with the government sector, transfers
A) flow only through the goods market. B) flow in the same direction as do taxes. C) flow in the opposite direction as do taxes. D) to firms flow in the same direction as do rent, wages, interest, and profits. E) to households flow in the same direction as do expenditures on goods and services.
The Acme Company is a perfect competitor in its input markets and its output market. Its average product of labor is 30, the marginal product of labor is 20, the price of labor is $20, and the price of the output is $5
For Acme Company, the marginal revenue product of labor A) is $100. B) is $150. C) is $400. D) is $600. E) cannot be determined with the information provided.
Suppose when the price of a cookie is $2.50, the quantity demanded is 50, and when the price is $1, the quantity demanded is 200. Using the midpoint method, the price elasticity of demand is:
A. –1.40 B. –0.72 C. –140 D. –7.2
In examining consumer behavior, one of the constraints faced by consumers is
a. happiness b. quantities consumed c. tastes and preferences d. entrepreneurial ability e. income