In perfect competition
A) the market demand curve and the individual's demand curve are identical.
B) the market demand curve is perfectly inelastic while demand for an individual seller's product is perfectly elastic.
C) the market demand curve is perfectly elastic while demand for an individual seller's product is perfectly inelastic.
D) the market demand curve is downward sloping while demand for an individual seller's product is perfectly elastic.
Answer: D
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Which of the following is not an example of a compensating differential?
a. paying workers who do dull, boring work higher wages than workers who do fun, interesting work, all else equal b. paying workers who work on the night shift higher wages than workers who work the day shift, all else equal c. paying workers who do more dangerous work higher wages than workers who do less dangerous work, all else equal d. paying workers with PhDs higher wages than workers with BAs, all else equal
Economies of scale exist where the long-run average cost curve is
A. upward sloping. B. horizontal. C. downward sloping. D. tangent to the marginal cost curve.
A chemical-producing firm is located just upstream from an electric power plant. Instead of the more expensive procedure of burying its wastes, the chemical-producing firm begins dumping its waste into the stream. This causes increased variable costs for the power plant, which uses water from the stream to cool its turbines. The chemical producer's dumping of waste into the stream causes
A. Only the MC of the power firm to shift downward. B. Only the MC of the chemical firm to shift upward. C. The MC of the chemical firm to shift downward and the MC of the power company to shift upward. D. The MC of the chemical firm to shift upward and the MC of the power company to shift downward.
The rate of return that households expect on their savings is determined by:
A) exchange rates. B) interest rates. C) government expenditure. D) tax rates.