Economists and accountants have very different definitions of profit
a. True
b. False
Indicate whether the statement is true or false
True
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One guideline that should be used whenever possible in developing a model is to
a. keep the model as simple as possible b. make the model as complex as possible so that it will be more accurate than other models c. rely on as many assumptions as possible d. not be concerned about including unnecessary details e. make certain that the model is an accurate, complete depiction of reality
Which of the following industries would see firms reach their minimum efficient scale at relatively low levels of output?
A. Hair salons. B. Automobile manufacturers. C. Software companies. D. Oil refineries.
A. a firm may realize excessively large profits. B. workers may provide less-than-expected work effort. C. compensating wage differences do not pay for differences in the nonmonetary aspects of jobs. D. human capital investments vary among
workers. A. principals and agents share a common interest, leading to free-rider problems. B. principals and agents are in an adversarial role, sharing no common interests. C. principals pursue some of their own objectives, which may conflict with the objectives of the agents. D. agents pursue some of their own objectives, which may conflict with the objectives of the principals.
Suppose that a monopolistically competitive market is in its long-run equilibrium. If the market demand curve shifts to the right due to changes in consumer preferences:
A. the number of firms in the market will increase in the short run. B. firms will earn positive economic profits in the short run. C. firms' average costs of production will increase as they increase output levels in the short run. D. None of these