According to the book, Akio Morita (the founder of Sony) drew a long-run average cost curve that was
A) U-shaped.
B) V-shaped.
C) W-shaped.
D) horizontal
A
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Use the following table for a certain product's market in Marketopia to answer the next question.Quantity Demanded DomesticallyPriceQuantity Supplied Domestically1,400$102,2001,60092,0001,80081,8002,00071,6002,20061,4002,40051,200Assume the small-country model is applicable. If the world price of the product is $6 and an import quota of 400 units is imposed on the product, then the equilibrium price in Marketopia would be ________ and the total quantity available in Marketopia would be ________ units.
A. $7; 1,800 B. $6; 1,800 C. $6; 2,200 D. $7; 2,000
Suppose the market price is $5, marginal cost is $4, and average total cost is $2. The perfectly competitive firm in that market is
A) earning $3 in economic profits per unit of output and is not maximizing profits. B) earning $2 in economic profits per unit of output and is maximizing profits. C) earning $1 in economic profits per unit of output and is not maximizing profits. D) none of the above: Insufficient information is given.
Conglomerate mergers provide each firm in the merger with some security against high industry risk. If one part of the merged firm suffers losses because of weak market demand,
a. the losses can be hidden in accounting techniques due to the larger and more complex nature of the company b. it can quickly get rid of the weak part of the conglomerate by selling off the assets c. other firms in the industry that did not merge with unrelated firms will have losses also d. the merger will have been proven to be a failure e. the merged firm will suffer but its impact on the firm will be more moderate than it would have been on the non-merged firms in the weak-market industry
A legal system that protects private property and enforces contracts in an even-handed manner helps promote economic growth because it
a. makes it possible for individuals to generate large incomes and get ahead without cooperating with others. b. provides people with a strong incentive to supply others with things that they value at an economical price. c. encourages people to use resources now rather than conserving them for the future. d. keeps the real wages of workers low and thereby makes it possible for business firms to supply goods and services economically.