In a monopolistically competitive market like retail trade, firms can easily enter and exit the market
a. True
b. False
Indicate whether the statement is true or false
True
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Refer to the scenario above. Suppose the economy is currently operating on the production function F2 and E2 is the level of employment in the country. If the demand curve for labor shifts to the left, ________
A) employment will remain unchanged at E1 B) output will increase from Y2 to Y3 C) employment will decrease from E2 to E1 D) employment will increase from E2 to E3
In the above figure, the market is at its equilibrium. Area B is equal to
A) consumer surplus. B) total revenue. C) marginal benefit. D) producer surplus. E) total surplus.
The money supply schedule is
A) horizontal because is set by the central bank while P is taken as given. B) horizontal because is set by the central bank. C) vertical because is set by the households and firms while P is taken as given. D) vertical because and P are set by the central bank. E) vertical because is set by the central bank while P is taken as given.
In an oligopoly, the total output produced in the market is
a. higher than the total output that would be produced if the market were a monopoly and higher than the total output that would be produced if the market were perfectly competitive. b. higher than the total output that would be produced if the market were a monopoly but lower than the total output that would be produced if the market were perfectly competitive. c. lower than the total output that would be produced if the market were a monopoly but higher than the total output that would be produced if the market were perfectly competitive. d. lower than the total output that would be produced if the market were a monopoly and lower than the total output that would be produced if the market were perfectly competitive.