Refer to the following graphs.
Which graph depicts a perfectly competitive firm that will minimize short-run losses by producing zero output?
A. Graph I
B. Graph II
C. Graph III
D. Graph IV
Answer: D
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An increase in the interest rate results in
A) a smaller opportunity cost of investment and so planned investment spending decreases. B) a greater opportunity cost of investment and so planned investment spending increases. C) a greater opportunity cost of investment and so planned investment spending decreases. D) a smaller opportunity cost of investment and so planned investment spending increases.
Which of the following is a source of market power for a monopolist?
a. a firm may have a patent or copyright b. a firm may control critical resources c. a firm may have a government-authorized franchise d. a firm may enjoy economies of scale e. all of the above are sources of market power for a monopolist
The United States has chosen to balance the competing claims of efficiency versus equality by emphasizing greater efficiency over greater equality.
Answer the following statement true (T) or false (F)
The fact that people are willing to pay much more for a diamond, which is not needed for survival, than they are willing to pay for a cup of water, which is needed for survival, is an example of irrational behavior
a. True b. False Indicate whether the statement is true or false