The opportunity cost of a decision is the value of all of the available alternatives that were not chosen
a. True
b. False
Indicate whether the statement is true or false
False
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The typical firm in many industries has become ________ over the past 100 years, and efficiently organizing production has become ________
A) larger; easier B) larger; more difficult C) smaller; easier D) smaller; more difficult
The vertical distance between the horizontal axis and any point on a perfect competitor's demand curve measures
A) total cost. B) total revenues. C) product price, marginal revenue, and average revenue. D) supply curve for the product.
According to the Taylor rule:
A. if real GDP rises by 2 percent above potential GDP, the Fed should raise the real federal funds rate by 1 percentage point. B. when real GDP is equal to potential GDP and inflation is equal to its target of 4 percent, the federal funds rate should be kept at 2 percent. C. if inflation falls by 1 percentage point below its target of 2 percent, then the Fed should raise the real federal funds rate by one-half a percentage point. D. all of these are appropriate Fed actions.
By promoting its brand name heavily, the monopolistically competitive firm
A) earns more profit in the long run. B) signals its long-term intention to stay in the industry. C) signals its intention to leave the industry. D) guarantees a short run profit.