In the long run, profit-maximizing monopolists facing a downward-sloping demand curve
a. may earn profits greater than their opportunity costs of capital.
b. do not produce every possible unit of output for which marginal utility is greater than or equal to marginal cost.
c. may or may not have lower costs than perfectly competitive firms in the same industry.
d. All of the above are correct.
d
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One plausible explanation of the U.S. productivity slowdown starting in 1973 is that it was the result of the time needed to adapt to new technology. This explanation would require that
A) workers withdraw from the labor force to learn about the new technology. B) a large number of new entrants be attracted to the labor force. C) managers be reluctant to adopt changes. D) workers time at their jobs be diverted from production to learning the technology.
If the price elasticity of demand is -0.8 and the firm increases price, revenue will
a. Increase b. Decrease c. Stay constant d. become zero, they would lose all their customers
If international trade is restricted by the government of a country:
a. the domestic consumers are benefited. b. the domestic producers are adversely affected. c. the domestic consumers pay higher prices for imported goods. d. the resources are equally distributed among domestic and foreign producers. e. the resources are allocated to their highest paid uses.
One explanation for the Leontief paradox is that the US has an advantage and exports goods produced with
What will be an ideal response?