If the expansion of output in an industry leads to unchanged resource prices, the industry is most likely to be a(n):
A. decreasing cost industry.
B. increasing cost industry.
C. constant cost industry.
D. industry characterized by economies of scale.
Answer: C
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The production possibilities frontier model assumes all of the following except
A) the level of technology is fixed and unchanging. B) any level of the two products that the economy produces is currently possible. C) labor, capital, land and natural resources are fixed in quantity. D) the economy produces only two products.
An increase in the price of ink will shift the supply curve for pens to the left
a. True b. False Indicate whether the statement is true or false
An important routine function of the Federal Reserve Bank is to:
A. help large commercial banks develop correspondent relationships with smaller commercial banks. B. advise commercial banks as to the most profitable ways of reinvesting profits. C. provide facilities by which commercial banks and thrift institutions may collect checks. D. supervise the liquidation of the assets of bankrupt state banks.
Which of the following statements applies to a monopolist but not to a perfectly competitive firm at their profit-maximizing outputs?
A) Marginal revenue is less than price. B) Marginal revenue equals marginal cost. C) Price equals marginal cost. D) Average revenue equals average cost.