Refer to the above figure. If demand curve D1 is the relevant demand curve, economic rent is
A. zero.
B. area KHG.
C. area FHGO.
D. OG.
Answer: A
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Which of the following is an example of a topic studied by macroeconomists?
A) Utility maximization by a consumer B) Decision making by a producer C) Aggregate demand in an economy D) Price determination by a firm
What is the shape of the total variable cost curve? Explain
What will be an ideal response?
The graph shown best represents:
A. a market for an inferior good. B. a non-binding price floor. C. a non-binding price ceiling. D. a missing market.
Suppose there are ten identical manufacturing firms that produce computer chips with machinery (capital, K) and labor (L), and each firm has a production function of the form q = 10KL0.5. What is the industry-level production function?
A) Q = 10K10L5 B) Q = 100KL0.5 C) Q = 100L0.5 D) none of the above