Four firms are major manufacturers in different industries. Which firm is likely in an oligopolistic market?
a. Firm A finds that increasing its output raises its average total cost.
b. Firm B competes against many rivals in its industry.
c. Firm C earns zero long-run economic profit.
d. Firm D is uncertain about its marginal revenue curve.
d. Firm D is uncertain about its marginal revenue curve.
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The law of decreasing returns states that as a firm uses more of a
A) fixed input, with a given quantity of variable inputs, the marginal product of the fixed input eventually decreases. B) variable input, total output will increase indefinitely. C) variable input, with a given quantity of fixed inputs, the marginal product of the variable input eventually decreases. D) variable input, output will begin to fall immediately. E) fixed input and a variable input, the marginal product of the fixed input and the marginal product of the variable input both decrease.
Of the choices given below, Jimmy, whose utility of wealth schedule is given above, prefers
A) option A: $300 with certainty. B) option B: 50 percent chance of $200 and 50 percent chance of $400. C) option C: 50 percent chance of $200 and 50 percent chance of $700. D) option D: 90 percent chance of $400 and 10 percent chance of $0.
The marginal productivity theory of income distribution was developed by
A) William Stanley Jevons. B) George Akerlof. C) John Bates Clark. D) Edward Lazear.
Production under increasing opportunity costs can result from the two industries using factors of production in different combinations
Indicate whether the statement is true or false