Figure 4-13
The drug BGH (bovine growth hormone) dramatically increases the milk output of dairy cows. Farmers in Wisconsin, a big dairy state, vigorously oppose licensing the drug, fearing that excess supply and a consumer reaction on the purity of food issue will put many of them out of business. Which graph in Figure 4-13 best illustrates the farmers' fears?
a.
1
b.
2
c.
3
d.
4
b
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Answer the next question based on the demand and cost schedules for a monopolistically competitive firm given in the table below.PriceQuantity DemandedTotal CostOutput$201$101182202163293144364125405106426What will be the economic profit or loss for this monopolistically competitive firm at the profit-maximizing level of output?
A. +$20 B. +$10 C. -$15 D. +$28
The task of economic regulation is to:
a. protect monopoly profits. b. approximate the results of the competitive market. c. replace competition with government ownership. d. ensure laissez faire. e. increase competition within the market.
Which of the following factors would not be considered by a fundamental analyst when predicting stock prices?
a. the future demand for a firm's products b. the patents held by a firm c. the likelihood of new firms competing with an existing firm d. potential changes in a firm's costs of production e. recent jumps in a firm's stock price
Which of the following is a true statement?
A. There is a long-run trade-off between inflation and unemployment. B. There is no trade-off between inflation and unemployment in the short-run. C. The short-run Phillips Curve is horizontal. D. The long-run Phillips Curve is vertical.