A few sellers may behave as if they operate in a perfectly competitive market if the market demand is:
A) highly inelastic.
B) very elastic.
C) unitary elastic.
D) composed of many small buyers.
B
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Refer to Figure 8.1. The dominant strategy for the players would be for Charla to play ________ and for Mirna to play ________
A) Install; Install B) Install; Don't Install C) Don't Install; Install D) Don't Install; Don't Install
Total fixed cost is the cost of
A) labor. B) production. C) a firm's fixed factors of production. D) only implicit factors of production. E) only explicit factors of production.
What will happen to the annual rate of growth of per capita real GDP if real GDP grows at a constant rate of 4.5 percent and the annual rate of population growth goes from 3 percent to 3.5 percent?
A) The annual rate of growth of per capita real GDP will increase from 7.5 percent to 8 percent. B) The annual rate of growth of per capita real GDP will increase from -1.5 percent to -1 percent. C) The annual rate of growth of per capita real GDP will remain unchanged. D) The annual rate of growth of per capita real GDP will decrease from 1.5 percent to 1 percent.
The short-run average total cost curve eventually begins to increase at an increasing rate because of
A. increasing returns to scale. B. economies of scale. C. diminishing returns. D. the constraint that the firm cannot change production technologies.