If a firm has monopoly power in the market for its output, the marginal revenue product of labor
a. is no different than for a competitive firm.
b. is less for each unit of labor than for a competitive firm.
c. continuously slopes upward instead of turning downward.
d. is greater for each unit of labor than for a competitive firm.
b. is less for each unit of labor than for a competitive firm.
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If there are four firms in an industry with market shares of 50 percent, 40 percent, 5 percent, and 5 percent, the Herfindahl-Hirschman Index is
A) 100. B) 4150. C) 25. D) 3450. E) undefined because there are not 50 firms in the industry.
An increase in production costs will shift the:
A) aggregate demand curve. B) short-run aggregate supply curve. C) long-run aggregate supply curve. D) none of the above.
If an industry is a constant-cost industry
a. prices of its inputs increase even though output remains constant b. it uses inputs at higher levels of output c. prices of its inputs rise at a constant rate as it uses more inputs d. prices of its inputs remain constant as the number of firms increases e. firms in the industry experience economies of scale
The market system is an economic system that:
a. Gives the government the right to tax individuals and corporations for the production of capital goods b. Produces more capital goods than consumer goods c. Gives private individuals and institutions the right to own resources used in production d. Produces more consumer goods than capital goods