Assume that a monopoly is producing at a profit-maximizing output level. If the firm's total fixed costs decrease, the firm
A) should lower its price.
B) should increase its price.
C) should continue to produce at the same level.
D) increase its output level.
C
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A production possibilities curve is negatively sloped because: a. unemployment increases as an economy moves down along the curve
b. along the curve, production of one good must be sacrificed in order to increase production of another. c. unemployment decreases as an economy moves down along the curve. d. as the price falls, more goods are purchased.
The price elasticity of demand for a popular sporting event is -2. If the price of a ticket to this event increases by 10%, the quantity of tickets demanded will decrease by
A. 20%. B. 0.2%. C. 5%. D. 10%.
In presence of serial correlation, the OLS variance formula accurately estimates the true variance of the OLS estimator.
Answer the following statement true (T) or false (F)
If the wage per unit of labor is $765 and the price of output is $5 per unit, then the optimal amount of labor to hire is
Suppose that production at a firm occurs according to the following schedule.
a) zero
b) at least one but less than two
c) between three and four
d) five
e) six or more