In the ________, each firm treats the output of its competitor as fixed and then decides how much to produce
A) Cournot model
B) model of monopolistic competition
C) Stackelberg model
D) kinked-demand model
E) none of the above
A
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The circular flow model shows that goods and services flow from
A) businesses to households. B) households to business. C) the factor market to businesses. D) the goods market to businesses. E) the factor markets to the goods markets.
"Higher ethanol production definitely and directly raises the price of corn," said USDA economist Ephraim Leibtag. In the short run in the corn market, what is TRUE if the production of ethanol increases?
A) The demand curve for individual corn farmers will shift upward. B) The price individual corn farmers receive will decrease. C) The total cost curve for individual corn farmers will shift upward. D) The marginal cost curve for individual corn farmers will shift downward.
If the marginal factor cost is greater than the marginal revenue product of a resource, the producer can increase profits by laying off some units of the resource
a. True b. False Indicate whether the statement is true or false
When actual investment is greater than planned investment:
A. firms have sold less output than expected. B. the economy produces the short-run equilibrium output. C. firms have sold more output than expected. D. the quantity of output sold is the amount the firm expected to sell.