A sunk cost:
A. causes a decision maker to choose to pursue less of an activity.
B. causes a decision maker to choose to pursue more of an activity.
C. increases the marginal cost of an activity.
D. has no effect on a decision maker's best choice.
D. has no effect on a decision maker's best choice.
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If a perfectly competitive firm is producing the short-run profit-maximizing quantity and is earning negative economic profits, the firm should anticipate ________.
A) the market equilibrium price to decrease B) the market supply to increase C) new firms to enter the market D) the market equilibrium price to increase
If the production function is Q = KL and capital is fixed at 1 unit, then the marginal product of labor when L = 25 is:
A. 15. B. ΒΌ. C. 1/10. D. None of the answers are correct.
The intellectual leader of the monetarists was
A) Robert Lucas. B) Milton Friedman. C) John Maynard Keynes. D) Paul Romer. E) John Taylor.
The demand curve for a monopolistically competitive firm is
A. more inelastic than for a monopoly firm. B. more elastic than for a monopoly firm. C. more elastic than for a perfectly competitive firm. D. the same elasticity as a perfectly competitive firm.