To arrive at a logical determination of a firm’s optimum output, economists assume that the firm seeks to
a. maximize output.
b. minimize cost.
c. maximize profit or minimize loss.
d. maximize price.
c. maximize profit or minimize loss.
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An increase in the price of poultry would lead to
A. a decrease in quantity demanded of fish and an increase in the demand for poultry. B. a decrease in quantity demanded of poultry and an increase in the demand for fish. C. an increase in quantity demanded of fish and a decrease in the demand for poultry. D. an increase in quantity demanded of poultry and a decrease in the demand for fish.
For a monopolistically competitive firm, the demand curve
A) is a horizontal line. B) has a positive slope. C) is vertical. D) has a negative slope. E) is the same as the marginal revenue curve.
Specialization and exchange develop under conditions of
A) massive ignorance. B) a total conflict of interests. C) coercion and exploitation. D) none of the above.
The advent of Netflix movie streaming and Redbox kiosks renting DVD and Blu-ray movies have virtually demolished the market for video rentals from brick and mortar stores such as Blockbuster. This is an example of
a. creative destruction.
b. derived demand.
c. capital accumulation.
d. the difference between normal and economic profits.