Refer to the diagrams, which pertain to a purely competitive firm producing output q and the industry in which it operates. The predicted long-run adjustments in this industry might be offset by:
A. a decline in product demand.
B. an increase in resource prices.
C. a technological improvement in production methods.
D. entry of new firms into the industry.
C. a technological improvement in production methods.
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If the value of marginal product of the last worker hired is $24 and the wage rate is $25, then
A) more workers should be hired. B) the worker should be fired. C) the firm has hired the profit maximizing number of workers. D) the firm is earning $1 of profit from this worker.
If real equilibrium GDP is above potential GDP, expansionary fiscal policy should be pursued
Indicate whether the statement is true or false
The tendency for the poorest risks to buy health insurance and the tendency of the insured to take more risks with their health are known as
a. moral hazard and adverse selection, respectively b. the winner's curse and adverse selection, respectively c. adverse selection and natural selection, respectively d. adverse selection and moral hazard, respectively e. the winner's curse and moral hazard, respectively
Recall the Application about the wireless phone service provided by thousands of entrepreneurial women in Pakistan to answer the following question(s).Recall the Application. What makes the wireless telephone market in the United States NOT perfectly competitive?
A. There are many buyers and many sellers in the United States. B. It is very expensive to enter the market in the United States. C. Wireless phone calls are a standardized product. D. All of these are correct.