A small change in the rate of productivity growth will have:
a. a small impact on output in both the short run and the long run
b. a large impact on output in both the short run and the long run.
c. a small impact on output in the short run but a large impact in the long run.
d. a large impact on output in the short run but a small impact in the long run.
e. no effect on output at all.
c
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A firm that faces a downward sloping demand curve is
A) a price taker. B) a price provider. C) a price searcher. D) a price creator.
Moral hazard is a problem that arises:
A. before the parties have entered into an agreement. B. after the parties have voluntarily entered into an agreement. C. either before or after the parties have entered into an agreement. D. rarely in any market
To reach an economically efficient output level, the size of an excise tax imposed on a firm generating a negative externality should be
a. the firm's marginal cost. b. the social marginal cost. c. the difference between the social marginal cost and the firm's marginal cost. d. the sum of the social marginal cost and the firm's marginal cost.
Figure 11-2
In Figure 11-2, at what quantity would the monopolist maximize profit?
A. A B. B C. C D. D