If one were to rank the demand curve facing a firm from the least elastic to the most elastic, the ranking would be
a. monopoly, perfectly competitive, monopolistically competitive
b. monopoly, monopolistically competitive, perfectly competitive
c. perfectly competitive, monopoly, monopolistically competitive
d. monopolistically competitive, monopoly, perfectly competitive
e. perfectly competitive, monopolistically competitive, monopoly
B
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Mike wants to open his own repair shop, and is considering using his savings of $30,000 to get it started. He is currently earning 3 percent interest on his savings. His friend Bob calls him and asks to borrow $30,000 to start up a bagel shop; Bob offers to pay him 5 percent interest if he loans him the money. If Mike were to use the money to open his own repair shop, how can he accurately account for his costs?
A. Mike must consider the $900 in forgone interest on his savings as an implicit cost. B. Mike must consider the $1,500 in forgone interest from loaning the money to Bob as an implicit cost. C. Mike must consider the $900 in forgone interest on his savings as an explicit cost. D. Mike must consider the $1,500 in forgone interest from loaning the money to Bob as an explicit cost.
Which of the following would lead a utility-maximizing consumer to search for additional information?
a. an increase in income b. an increase in the marginal cost of information c. improved technology (e.g., Internet search programs) d. a reduction in the dispersion of prices e. an increase in the consumer's wage rate
Which of the following statements is correct?
a. A minimum wage law will result in less additional unemployment if labor demand is elastic rather than inelastic. b. An in-kind transfer allows a person to use the benefit to purchase whatever they think they need most. c. If a tax policy states that taxes owed equal 1/3 of income less $15,000 . a person earning $25,000 per year would owe $6,666.67 in taxes. d. Welfare reform enacted in 1996 limited the amount of time recipients could stay on welfare.
Which of the following distinguishes a natural monopoly from monopoly caused by ownership of a vital resource?
A. The natural monopoly has a marginal cost curve above its average cost curve at all levels of output, and the marginal cost in other monopolies is also above average cost. B. The natural monopoly does not require any government intervention because it is only efficient to have one large firm supplying the market, but other monopolies do require government intervention to maintain efficiency. C. The natural monopoly has a downward-sloping long-run average cost curve as opposed to a U-shaped long-run average cost curve. D. The natural monopoly occurs with naturally occurring products like gold and diamonds, whereas other monopolies occur with man-made products.