Refer to the information provided in Figure 9.2 below to answer the question(s) that follow.
Figure 9.2Refer to Figure 9.2. If MR = $7, then a profit-maximizing firm will produce ________ units and earn a profit of ________.
A. 7; $0
B. 15; $30
C. 13; $0
D. 13; $91
Answer: C
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The supply of labor curve has a ________ slope because as the real wage rate rises, ________
A) positive; the opportunity cost of leisure rises B) negative; households work more hours C) positive; the opportunity cost of leisure falls D) positive; firms offer more jobs E) negative; firms hire fewer workers
The case of New Zealand, described in the text, concludes that a country's current account deficits are not sustainable if a country's
A) prospects for long term economic growth are above its global deficit growth. B) ability to sustain current account deficits is questionable. C) unproductive industrial sectors and its prospects for long run growth. D) labor productivity is below that of most other countries. E) exchange rate has fallen relative to other currencies.
When a monopolistically competitive firm is in long-run equilibrium,
a. marginal revenue is equal to marginal cost. b. average total cost is minimized. c. marginal revenue is tangent to average total cost. d. All of the above are correct.
A horizontal long-run average cost curve indicates
A. constant returns to scale. B. constant marginal physical product. C. diseconomies of scale. D. economies of scale.