Stark Industries decides to decrease its production for the current quarter because the demand for its product had fallen significantly during the last two years for the same quarter. The strategy adopted by Stark Industries is based on the theory of _____
a. absolute advantage
b. rational expectations
c. adaptive expectations
d. sticky wages
c
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Authors Ulrich and Dunne found that many of the ways that people react to work, employers, and coworkers are based on:
a. early childhood experiences b. school experiences with teachers c. language development d. first paid work experiences
If a perfectly competitive industry is neither expanding nor contracting, we would typically expect that: a. accounting profits to be zero
b. economic profits to be zero. c. the price of the good will be stable d. both (b) and (c) would be true.
In the graph for changes in average costs, if a monopolist moves from ATC1 to ATC2, it will ______.
a. earn a very high rate of return
b. earn a very low rate of return
c. still earn a normal rate of return
d. be unable to stay in business
The theory of bounded rationality suggests that as price rises:
A. marginal utility will decline. B. MU/P may not decline. C. MU/P will always decline. D. the opportunity cost of the good will decline.