The MC curves in the diagram slope upward because of the law of:
A. demand.
B. conservation of matter and energy.
C. diminishing marginal utility.
D. diminishing returns.
D. diminishing returns.
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Arnold Harberger was the first economist to estimate the loss of economic efficiency due to market power. Harberger found that
A) the loss of economic efficiency in the U.S. economy due to market power was small around 1973, about 1 percent of the value of production, but has since grown to about 10 percent. B) because of the increase in the average size of firms since World War II, the loss of economic efficiency has been relatively large, about 10 percent of the value of total production in the United States. C) the loss of economic efficiency in the U.S. economy due to market power was less than 1 percent of the value of production. D) although the number of monopolies was small, the large number of other non-competitive firms in the United States resulted in a large loss of economic efficiency, about 20 percent of the value of total production.
_____ improves exchangeability, and reduces the cost of obtaining information about a good and about the parties involved in the transaction
a. De-integration b. Outsourcing c. Vertical integration d. Standardization
Amos is a baker in Tucson. Which of the following statements is correct?
a. The wage needed to keep Amos in the bakery industry in Tucson in the long run is lower than the wage needed to keep him in the industry in the short run. b. The costs of entering the bakery industry in Tucson are sunk costs and therefore those costs shouldn't be a consideration in Amos's decision to stay in the industry. c. The wage needed to keep Amos in the bakery industry in Tucson in the short run is lower than the wage needed to keep him in the industry in the long run. d. The wage needed to keep Amos in the bakery industry in Tucson in the long run is not important -- only the short-run wages are relevant. e. The costs of entering the bakery industry in Tucson are sunk costs and therefore those costs should be considered in Amos's decision to stay in the industry.
If an employer could really hire women who were willing and able to do the same work as men for 20 percent less, profit-seeking employers would have
a. a strong incentive to hire more women, which would shrink this differential. b. little incentive to hire women, since hiring men would still be more profitable. c. a strong incentive to hire fewer women, and this would reduce the wage gap between men and women. d. a strong incentive to hire fewer women, which would expand the wage gap between men and women to an even higher level.