When a firm's earnings rise, its stock prices will tend to fall
a. True
b. False
Indicate whether the statement is true or false
False
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When do firms pay efficiency wages? What is the relationship between moral hazard and efficiency wages?
What will be an ideal response?
Two factories make wooden chairs. If the workers in factory A make each chair from start to finish and the workers in factory B divide labor, one would assume
A) the chairs in factory A are of higher quality. B) the workers in factory B have more job satisfaction. C) factory B can take advantage of division of labor and produce more efficiently. D) factory A can take advantage of division of labor and produce more efficiently.
When there are economies of scale over the relevant range of output for a monopoly, the monopoly
a. is a natural monopoly. b. is a government-granted monopoly. c. has monopoly power due to the ownership of a patent or copyright. d. has monopoly power due to the ownership of a key production resource.
Refer to the information provided in Figure 15.3 below to answer the question(s) that follow. 
Figure 15.3 Refer to Figure 15.3. In the short run, this company is ________, and in the long run, it should expect to ________.
A. suffering a loss; shut down B. suffering a loss; break even C. breaking even; break even D. making a profit; break even