During the last decade, the price of a computer fell every year and the quantity sold increased every year. This experience suggests that the
A) "law of demand" was definitely contradicted.
B) "law of supply" was definitely contradicted.
C) demand curve shifted rightward.
D) supply curve shifted rightward.
D
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Explain how some structural changes can increase the natural unemployment rate while other structural changes can decrease the natural unemployment rate
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If a firm spends $600 more on advertising, its
A) ATC and MC curves shift upward. B) MC curve shifts upward and its ATC curve does not shift. C) ATC curve shifts upward and its MC curve does not shift. D) ATC curve shifts upward and its MC curve shifts downward.
The South African diamond production monopoly is an example of monopoly through
A. “patent power.” B. legal restriction. C. control of scarce resources. D. large sunk costs.
For a given pair of production outputs, the degree of economies of scope:
A) is constant across different output levels. B) only increases as the level of output increases. C) may increase or decrease with output. D) will always tend to zero as output becomes very large.