A firm in a perfectly competitive market
a. can raise the price of its product and sell more output
b. can lower the price of its product and sell more output
c. can increase its supply to lower the price
d. can decrease its supply to raise the price
e. accepts the market price for its product
E
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The introduction of word processing software that increases the demand for workers with computer skills relative to those without such skills is an example of:
A. skill-biased technological change. B. increasing reservation prices. C. the diminishing marginal product of labor. D. globalization.
Figure 7-2
In Figure 7-2, at an output of 500, marginal cost equals
A. 10. B. 20. C. 30. D. 40.
Don's Pasture Apple Cider Company buys four inputs: apples, glass bottles, apple presses, and computers for record keeping. If the company decides to become more vertically integrated, it will
a. probably start growing apples next b. probably start making glass bottles next c. probably start making apple presses next d. probably start making computers next e. have to grow apples and make glass bottles, apple presses, and computers
Inflation is a measure of the ________ of prices; the CPI is a measure of the ________ of prices.
A. current level; rate of change in the level B. base year's level; index C. rate of change in the level; current level D. index; base year's level