Assuming the firm in the graph is producing Q1 and charging P3, it is likely showing the cost and revenue curves of a firm in:
These are the cost and revenue curves associated with a firm.
A. the short run, and firms will enter this market.
B. the long run, and firms will enter this market.
C. the short run, and firms will leave this market.
D. the long run, and no firms will enter or exit.
D. the long run, and no firms will enter or exit.
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In a market with ________, one side of the market has private information that is relevant for the other side
A) asymmetric information B) perfect competition C) monopolistic competition D) positive externalities
If a country that fixes its exchange rate has an undervalued exchange rate, then it will ________ reserves, unless it ________ its money supply to the appropriate level
A) gain; increases B) lose; increases C) lose; decreases D) gain; decreases
In response to the threat of budget cuts, the Connecticut State Department of Recreation proposed shutting down many state parks and beaches. This is a good example of
a. cost efficiency in bureaus b. Niskanen's theory of budget-maximizing bureaus c. the median-voter model d. logrolling e. direct democracy
Imagine the U.S. economy is in long-run equilibrium. Then suppose the aggregate demand increases. We would expect that in the long-run the price level would
a. increase b. decrease. c. stay the same. d. decrease by the same amount as the increase in aggregate demand.