A monopoly
a. can set the price it charges for its output and earn unlimited profits.
b. takes the market price as given and earns small but positive profits.
c. can set the price it charges for its output but faces a downward-sloping demand curve so it cannot earn unlimited profits.
d. can set the price it charges for its output but faces a horizontal demand curve so it can earn unlimited profits.
c
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Which of the following best describes the effect on the aggregate supply curve if political negotiations result in a substantial decrease in the price of oil?
A) There is no change to the AS curve. B) The AS curve does not shift but there is a downward movement along it. C) The AS curve shifts leftward. D) The AS curve does not shift but there is an upward movement along it. E) The AS curve shifts rightward.
An inside lag is
A) a policy aimed at reducing GDP. B) a lag in implementing policy. C) the period of time it takes for policies to work. D) a policy aimed at increasing GDP.
The short-run supply curve of a perfectly competitive firm
A. intersects the minimum point of its short-run average total cost curve but not its short-run average variable cost curve. B. intersects the minimum point of its short-run average variable cost curve but not its short-run average total cost curve. C. intersects the minimum point of both its short-run average variable cost and its short-run average total cost curves. D. intersects the minimum point of its short-run average total cost curve and may or may not intersect the minimum point of its short-run average variable cost curve.
The features of the U-Form of firm organization are
a. workers have trouble developing a high degree of functional expertise b. it is difficult for employees to share information across positions within a division c. employee evaluation is simplified by managers having similar skill sets than workers d. coordination across divisions is simple and does not take much management time