Refer to Figure 13-8. Based on the diagram, one can conclude that
A) some existing firms will exit the market. B) the industry is in long-run equilibrium.
C) new firms will enter the market. D) firms achieve productive efficiency.
C
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Refer to Figure 13.2. Oliver's political views place him at the L4 position and George's political views place him at the C4 position. Based on the two candidates' political views, Sam Butcher decides to enter the race as a third-party candidate
Oliver refuses to change his political views and so remains at the L4 position. Sam espouses political views that place him at the C2 position. Not wanting to lose any conservative votes to Sam, George decides to alter his political views so he, too, ends up at the C2 position. In this situation, who is indifferent about all three of the candidates? A) Alice B) Jan C) Cindy D) Peter
"In order for Charlie Trotter's, an upscale restaurant in Chicago, to maximize profit from the employment of chefs, the restaurant should hire chefs up to the point where the value of marginal product equals the wage rate for chefs"
Is the statement correct or incorrect?
Since 1948, the history of real wage rates generally shows that
a. prices and wages have risen at the same rate. b. prices have risen at a slower rate than wages. c. prices have risen faster than wages. d. real wages have remained constant over the period.
Which of the following is a major shortcoming of government regulation of business monopoly?
a. The regulators often estimate production costs incorrectly and thus force firms into loss positions. b. The regulators often come to represent the interests of the established firms and use their power to limit competition. c. The regulators usually permit firms to make unusually high accounting profits. d. The regulators, acting in consumers' interests, often force prices so low that even with efficient production techniques the regulated firms lose money.