In the circular-flow diagram, factors of production are the goods and services produced by firms
a. True
b. False
Indicate whether the statement is true or false
False
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"A single-price monopoly charges a higher price and produces more output than a perfectly competitive industry." Is the previous statement correct or incorrect? Explain your answer
What will be an ideal response?
Indifference curves shift or rotate
A) only when income changes. B) only when prices change. C) when either income or prices change. D) with none of the above because changes in income and prices do not shift indifference curves.
Adverse selection will occur in a market as a result of
A) rational ignorance. B) moral hazard. C) the sale of "lemons." D) asymmetric information.
Refer to the data provided in Table 9.4 below to answer the question(s) that follow. Table 9.4qTFCTVCTCMCAVCATC0$100 $0$100 ---- -- 11004014040 40 140 21006016020 30 80 31009019030 30 63.334100124 224 343156 5100180 280 56 36 56 6100 264 364 84 44 60.677100 372 472 108 53.14 67.42Refer to Table 9.4. The market price is $84 and this firm is producing four units of output. Which of the following would you recommend to this firm?
A. Increase output to seven units so that price is less than marginal cost. B. Continue producing four units of output, because the firm is able to make an economic profit. C. Increase output to six units, so that marginal cost equals marginal revenue. D. Reduce price to $34, so that marginal cost will equal marginal revenue at 4 units of output.