The extra cost associated with undertaking an activity is called
A) opportunity cost. B) foregone cost. C) marginal cost. D) net loss.
C
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Which of the following is a necessary condition for government subsidies to influence a firm to choose an output level as if it were a Stackelberg leader?
A) The subsidy must be announced before the firms choose output levels. B) The subsidy must be equal to the firm's marginal cost. C) The subsidy must be equal to the firm's rival's marginal cost. D) The firm does not have any fixed costs.
Under certain conditions, the slope of the marginal revenue product curve reflects the combined effects of diminishing marginal returns and a declining price of the product the firm sells. What are these conditions?
a. The firm must be a price searcher in both the product market and the resource market. b. The firm must be a price searcher in the product market, regardless of whether it is a resource price searcher. c. The firm must be a price searcher in the product market but not necessarily in a perfectly competitive resource market. d. The firm must be a price searcher in a perfectly competitive product market. e. The firm must operate in a decreasing-cost industry.
Which one of the following statements concerning employee discrimination is not true?
A. Workers accept the utility-maximizing job offer even when there is employee discrimination. B. Employee discrimination does not affect the profitability of firms as long as firms can employ segregated work forces. C. Employers have no reason to employ a segregated workforce if there is employee discrimination. D. Discriminating employees act as if their wage is less than it actually is if they are employed by a firm that has an integrated workforce. E. Employee discrimination will not produce a wage differential between equally skilled black and white workers.
A perfectly competitive market:
A. is dominated by one firm. B. consists of at most five firms. C. is made up of a large number of firms. D. consists of only one firm.