When should a firm increase its production?
a. When it is earning a positive profit.
b. When its revenues are too low to cover the firm's fixed costs.
c. When there is a fall in the price of its product.
d. When its marginal revenue exceeds its marginal cost.
d. When its marginal revenue exceeds its marginal cost.
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In Figure 9-13, a movement of long-run equilibrium from point A to point C could be caused by a(n)
a.
decrease in supply from S2 to S1 in response to economic profits following a decrease in demand from D2 to D1
b.
increase in short-run supply from S1 to S2
c.
increase in supply from S1 to S2 in response to economic profits following an increase in demand from D1 to D2
d.
increase in demand from D1 to D2 in the short run
History suggests that economic competition is the most consistent force for economic growth and progress.
Answer the following statement true (T) or false (F)
The union wage differential
A) varies substantially across employment sectors. B) increases during expansions. C) has remained fairly constant over the past 30 years. D) is greater for private sector employees than for government sector workers.
The demand for goods such as telephone service and medical care tend to be
A. perfectly elastic. B. relatively elastic. C. unit elastic. D. relatively inelastic.