Suppose a monopolist and a competitive price-taker firm have the same cost curves. The monopoly firm would
a. charge a lower price than the competitive price-taker firm.
b. charge a higher price than the competitive price-taker firm.
c. charge the same price as the competitive price-taker firm.
d. refuse to operate in the short run unless an economic profit could be made.
e. refuse to operate in the short run if an economic loss was present.
B
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Which of the following is true? a. If minimum wage is set below the equilibrium wage, it leads to a labor surplus
b. If anything interferes with the voluntary exchanges that make up a market, equilibrium does not occur. c. Minimum wage helps deal with the problem of unemployment in the market for unskilled labor. d. Producers are willing to employ more labor at a minimum wage. e. Minimum wage leads to a situation of labor deficit in a market.
In Econland population increased from 1 million to 1.1 million, the number of employed workers increased from 500,000 to 600,000, but average labor productivity decreased from $20,000 per worker per year to $19,000 per worker per year. Total output in Econland ________ and the average standard of living ________.
A. increased; increased B. increased; decreased C. decreased; decreased D. decreased; increased
In a market with barriers to entry:
A. the implications of Adam Smith's theory of the invisible hand can be expected to hold. B. prices will direct productive resources toward underserved markets. C. firms will earn zero economic profit in the long run. D. economic profit will not fall to zero in the long run.
In January 2015, Tim's Gyms, Inc. owned machines valued at $1 million. During the year, the market value of the equipment fell by 30 percent. During 2015, Tim spent $200,000 on new machines. During 2015, Tim's net investment totaled
What will be an ideal response?