The curve formed by plotting the value of the marginal product for workers against quantity of labor is:
A. downward sloping.
B. upward sloping.
C. perfectly elastic, for competitive firms.
D. perfectly inelastic.
A. downward sloping.
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In the short run, a perfectly competitive firm can make a profit, a loss, or go out of business.
Answer the following statement true (T) or false (F)
Suppose a perfectly competitive constant-cost industry is in long-run equilibrium when market demand suddenly increases. What would probably happen to a firm in this industry in the long run?
a. It would experience no change for the original equilibrium b. It would experience a higher equilibrium price c. It would experience a lower equilibrium price d. It would experience the same equilibrium price but would reduce its output e. It would experience higher average total costs and would reduce its output
When firms have had to defend themselves against the charge that they have adopted unjustifiably low prices either to drive a competitor out of business or to prevent the entry of a rival, they have been accused of
a. creating a trust. b. conspiracy. c. predatory pricing. d. price discrimination.
Talking about alternatives is the first step in a process that helps us make better choices about how we use our resources.
Answer the following statement true (T) or false (F)