What is true at the profit-maximizing quantity for a perfectly competitive firm but not for a nondiscriminating monopoly?
a. Price equals marginal cost.
b. Price is greater than marginal cost.
c. Marginal revenue equals marginal cost.
d. Marginal revenue is less than marginal cost.
e. Marginal revenue is greater than average revenue.
A
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Describe and explain the policy irrelevance proposition
What will be an ideal response?
Mismatch and turnover unemployment, while conceptually easy to distinguish, are often difficult to identify. Ceteris paribus, a person out of work for two months would be classified by Gordon as
A) experiencing turnover unemployment. B) experiencing mismatch unemployment. C) impossible to distinguish the type. D) first frictionally unemployed (the first month) and then structurally unemployed.
Research by Warburton, and more recently Miron and Zweibel on alcohol consumption during and after prohibition indicates that:
a. the demand for alcohol is fairly price inelastic. b. the demand for alcohol is fairly income inelastic. c. the demand for alcohol is fairly price elastic. d. the demand for alcohol has a price elasticity of zero.
A key characteristic of a renewable natural resource is that it will continue to regenerate itself, regardless of how it is managed or used, and so can be used periodically for an indefinite period of time
Indicate whether the statement is true or false