In the long run:
A. price and output levels are mutually dependent.
B. the level of output depends on the price level.
C. the level of output is independent of the price level.
D. the price level depends on the level of output.
Answer: C
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In the long run, existing firms exit a perfectly competitive market
A) only if economic profits are zero. B) if they make a positive economic profit. C) if normal profits are greater than zero. D) only if they incur an economic loss. E) if they either make a normal profit or if they incur an economic loss.
In international trade the term "dumping" means
A) price discrimination by domestic producers. B) selling goods in a foreign market for a price less than on the home market. C) selling goods in a home market for a price less than on the foreign market. D) selling goods on the black market to avoid paying taxes.
Refer to the information provided in Table 8.4 below to answer the question(s) that follow. Table 8.4ProduceUsing TechniquesUnits of Variable KInputs L1 unit of outputA4 4?B2 6????2 units of outputA 7 6?B410????3 units of outputA 8 6?B 6 11Refer to Table 8.4. Assuming the price of capital (K) is $10 per unit and the price of labor (L) is $5 per unit, the marginal cost of producing the third unit of output is
A. $15. B. $20. C. $25. D. indeterminate from this information.
If a nail salon hires an additional worker, that worker can service 8 additional customers per day. The average nail service fee is $30. The most the salon would be willing to pay that worker is
A. $8 per day. B. $30 per day. C. $240 per day. D. indeterminate with the given information.