Oligopolies would like to act like a
a. duopoly, but self-interest often drives them closer to the perfectly competitive outcome.
b. competitive firm, but self-interest often drives them closer to the duopoly outcome.
c. monopoly, but self-interest often drives them to charge a higher price than would be charged by a monopoly.
d. monopoly, but self-interest often drives them closer to the perfectly competitive outcome.
d
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The output effect of a change in the wage rate on a firm's demand for labor input will be greater:
a. the larger the share of labor costs in total costs and the greater the price elasticity of demand for output. b. the larger the share of labor costs in total costs and the smaller the price elasticity of demand for output. c. the larger the share of labor costs in total costs and the higher the quantity demanded. d. the smaller the possibilities of substituting capital for labor.
When the 2010 Patient Protection and Affordable Care Act is fully implemented, it will
a. require employers with 50 or more employees to provide approved health insurance for their employees or pay a $2000 fine annually for each full-time employee. b. expand the supply of doctors and other medical services. c. require all members of Congress and congressional staff employees to purchase their health insurance through the government operated exchanges. d. make it legal for individuals to purchase health insurance from an insurer in another state.
If a firm in a perfectly competitive market faces the cost curves in the graph shown and observes a market price of $13, the firm:
A. should continue to operate in the short run, but plan to exit in the long run. B. cannot make positive profits and should shut down in the short run. C. can make positive profits by producing more than 35 units. D. can make positive profits by producing where MC = MR.
The short-run aggregate supply curve:
A. Becomes flatter at output levels above the full-employment output B. Becomes steep at output levels above the full-employment output C. Is upward-sloping with a constant slope D. Is horizontal