If a monopolistically competitive industry is in long-run equilibrium, a firm in that industry might be able to increase its economic profits by:
A. decreasing the price of its product.
B. increasing the demand for its product.
C. increasing the price of its product.
D. decreasing the demand for its product.
Answer: B
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A tax on interest income could be efficient even if it leads to a decrease in savings.
Answer the following statement true (T) or false (F)
Which of the following is an example of paradigm innovation:
A. Windows computer operating system B. Energy-saving light bulbs C. The latest model of the Honda Civic D. Rechargeable batteries
Number of workersUnits of output0012525539541255150
Refer to Table 5.2, which gives a firm's production function. Assume that all non-labor inputs are fixed. The marginal product of the fifth worker is:
A. 0 units. B. 10 units. C. 25 units. D. 30 units.
When an economy is at full employment and full production, more of any one product:
A. cannot be produced unless private enterprise does so rather than government. B. cannot be produced because there is full production. C. can be produced only if there is less production of some other products. D. can be produced only if there is a general decrease in prices.