Senator Hubris wants to pass a law that would require all monopolistically competitive firms to operate at their efficient scale. If this law were to pass and be enforced, we would expect that monopolistically competitive firms would
a. see their profits increase.
b. break even.
c. lose money.
d. not really be affected by the law.
c
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Corporations account for a ____ proportion of U.S. firms and a ____ proportion of sales by U.S. firms
a. small; small b. small; large c. large; small d. large; large
A public good:
a. is rivalrous in consumption and excludable b. in nonrivalrous in consumption and nonexcludable c. must be produces by government d. both b. and c.
The marginal product of labor and the price of the output produced determine the:
A. worker mobility B. the demand for labor C. the price of labor D. the supply of labor
At age 40, Joe is considering quitting his job and going back for a college degree. He needs two more years full-time. Tuition is $10,000 per year. He earns $30,000 per year. A college degree would raise his annual income by $10,000 per year. He will retire at age 70. Which of the following makes it more likely that Joe will decide to go back to college full-time?
A) The rate of interest increases. B) The rate of interest decreases. C) The government enacts mandatory retirement at age 60. D) Tuition increases.