Refer to the given table. Which of the following best represents the labor demand schedule for this firm?
| Employment | Total Product | Product Price |
| 0 | 0 | $3 |
| 1 | 12 | 3 |
| 2 | 22 | 3 |
| 3 | 30 | 3 |
| 4 | 36 | 3 |
| 5 | 40 | 3 |
| 6 | 42 | 3 |
Answer:
| WR | Qd |
| $35 | 1 |
| 29 | 2 |
| 23 | 3 |
| 17 | 4 |
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Answer the following statement(s) true (T) or false (F)
1. A competitive industry is a viable alternative to a natural monopoly. 2. Patents have ambiguous welfare consequences because they both create monopoly power and promote inventive activity. 3. The competition among firms to acquire the rights to legal barriers to entry helps to reduce the welfare costs of monopoly. 4. Social gain is lowered when a monopoly begins to practice price discrimination. 5. When a simple profit-maximizing monopoly begins to practice second-degree price discrimination, both consumers and the monopoly will benefit.
In the short run, if a firm is suffering a loss, it should
a. always shut down to prevent further losses. b. continue to operate as long as it can recover variable cost. c. continue to operate as long as it can recover fixed cost. d. continue to operate if marginal cost is below average total cost.
The difference between GDP and net taxes is
A) actual investment spending. B) personal income. C) unplanned investment spending. D) disposable income.
If a firm is operating at an output level where losses are minimized the firm
A) has no incentive to stay in the industry. B) is better of exiting the industry. C) is maximizing profits. D) will shut down