If a technological advance increases a firm's labor productivity, we would expect the firm's:
A. total cost to rise.
B. average total cost to rise.
C. average total cost to fall.
D. average total cost to be unaffected.
Answer: C
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Use the following graph for a monopolistically competitive firm to answer the next question.
A firm with which demand curve has more control over prices?
A. B, because its more elastic B. A, because it's more inelastic C. B, because it's more inelastic D. A, because it's more elastic
Which is the best example of idiosyncratic risk?
A) a financial crisis B) a lawsuit because the corporation produced a faulty product C) a recession D) rising interest rates
In the short run, a monopolistically competitive firm can earn
A) positive profits only. B) zero profits only. C) zero or positive profits only. D) zero, positive or negative profits.
the Federal Reserve System
What will be an ideal response?