If a competitive firm successfully adopts a better production technology ahead of the others, then:
A. Its product price will become lower than the others'
B. Its average cost will become higher than the others'
C. Its profits will become higher than the others'
D. Its marginal revenue will become higher than the others'
C. Its profits will become higher than the others'
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If the marginal propensity to consume is 0.75, net taxes are fixed at $2,000 and real income rises by $12,000 . by how much will real consumption spending increase?
a. $9,000 b. $8,000 c. $7,500 d. $7,000 e. $10,000
Which of the following is not a main function of the entrepreneur?
A. to innovate B. to assume the risk of economic losses C. to make strategic business decisions D. to make routine pricing decisions
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What will be an ideal response?
Samuelson and Solow, in their 1960 study of the Phillips curve as it applies to the U.S. experience, argued that there was a tradeoff between inflation and unemployment. Later experience showed their analysis to be
A) entirely correct in every situation. B) generally correct, but it could not explain stagflation. C) wholly wrong in every situation. D) in general agreement with rational expectations theory. E) capable of explaining stagflation, but not other economic scenarios.