Figure 6.2 shows the cost structure of a firm in a perfectly competitive market. If the market price is $10 and the firm chooses the profit-maximizing output level, its profit is:
A. $1,000.
B. $800.
C. $720.
D. $200.
Answer: D
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The Cournot model specifies how two firms in an oligopoly compete in terms of quantity. Briefly describe how the outcome of Cournot oligopoly competition relates to the outcomes of perfect competition and monopoly in terms of output and market efficiency/inefficiency. Can you be more precise about the relation between Cournot, monopoly, and perfectly competitive outputs if you know that demand is linear and marginal costs are constant? Explain.
What will be an ideal response?
Among the most important indicators used by the NBER Business Cycle Dating Committee to determine the beginning of the 2007-2009 recession were all of the following except:
A. industrial production. B. total sales in manufacturing, wholesale trade, and retail trade. C. nonfarm employment. D. the consumer price index.
Most Americans experience significant fluctuations in their economic well-being from one year to the next
a. True b. False Indicate whether the statement is true or false
An upward-sloping supply curve of labor reflects the fact that the
a. demand for the good is increasing causing its price to increase b. population size in the region is increasing c. workers are willing to supply a greater quantity of labor at higher wage rates d. marginal revenue product rises as the wage rate rises e. workers' opportunity costs are falling as the wage rises