If the price were $20, what would the firm do in the (a) short run? (b) long run?
(a) operate; (b) stay in business
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Is it possible for the total market demand for a good at the prevailing price to be inelastic while the demand facing any one seller of the good is highly elastic?
A) No, because each seller's demand is a part of the total demand. B) No, because if this were the case the price would fall until the market demand became elastic. C) No, because if this were the case the price would rise until the market demand became elastic. D) Yes, and it's actually quite common.
In the Keynesian model in the long run, an increase in taxes causes the price level to ________ and the real interest rate to ________
A) fall; rise B) fall; fall C) rise; rise D) rise; fall
If the United States has an absolute advantage in producing computer components, it should export them worldwide
a. True b. False
A contract may remain incomplete because the expected benefits of greater completeness do not cover the costs of drafting it
Indicate whether the statement is true or false