Refer to the information below. What is slope of the demand curve?
A small nation has three gasoline suppliers with a linear monthly market demand equal to: Q = 500,000 - 5P. Each firm's marginal cost (MC) and average total cost (ATC) curves are horizontal at $10,000 per month.
A) 0.20
B) -0.20
C) -5
D) 5
Answer is B) -0.20
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Which of the following is least likely to limit the ability of a firm to minimize production costs?
A) Resistance by labor. B) The fact that the firm is a nonprofit organization. C) An increase in the amount of competition faced by the firm. D) Legislated input combinations for firms in particular industries, e.g, health care.
Compare and contrast the four market models in terms of the profit-maximizing output level for each, the shut-down rule for each, the probability of long-run economic profits being earned, and their social desirability.
What will be an ideal response?
The demand curve for labor slopes down because
A. firms must lower prices to sell the additional units of its product that the extra workers produce. B. of the law of diminishing marginal product. C. firms value less efficient workers less than they value more efficient workers. D. of profit maximizing behavior.
Related to the Economics in Practice on p. 544: In February 2018, a new Chair of the Board of Governors of the Federal Reserve System was confirmed. This person is
A. the first Fed chair since Paul Volker to come to the position without a PhD in Economics. B. the first person to serve in this position who had never previously been employed in the Federal Reserve System. C. the first Democrat to serve in this position. D. all of the above