Given the table below, what is the short-run profit-maximizing level of output for the firm?OutputTotal RevenueTotal Cost1$4$22833126416952014
A. 5 units
B. 4 units
C. 2 units
D. 3 units
Answer: B
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Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
When an economy is at full employment, the unemployment rate is zero percent
Indicate whether the statement is true or false
On September 3, 2003, Universal Music Group announced plans to reduce the wholesale price of music CDs it distributes by an average of 25-30 percent. All else constant (i.e
, ignoring the effects of file-sharing programs), how would this change affect the retail market for new music CDs? A) Demand for CDs would increase, causing equilibrium price and quantity to increase. B) The supply of CDs would increase, causing equilibrium price to decrease and equilibrium quantity to increase. C) Demand for CDs would decrease, causing equilibrium price and quantity to decrease. D) The supply of CDs would decrease, causing equilibrium price to increase and equilibrium quantity to decrease.
A monopoly firm is a ______________ and faces a __________ sloping demand curve
a. Price taker; horizontal b. Price searcher; horizontal c. Price searcher; downward d. Price taker; downward