Assume that a rise in petroleum prices increases the cost of milk transportation from the dairies to the market. We can expect the long-run supply curve in this industry to shift downward
Indicate whether the statement is true or false
F
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A requirement of perfect competition is that
i. many firms sell an identical product to many buyers. ii. there are no restrictions on entry into (or exit from) the market, and established firms have no advantage over new firms. iii. sellers and buyers are well informed about prices. A) i only B) i and ii C) iii only D) i and iii E) i, ii, and iii
Two friends, Diane and Sam, own and run a bar. Diane tends bar on Monday, Wednesday, and Friday and receives a wage in addition to tips. Sam tends bar on Tuesday, Thursday, and Saturday and receives only tips. Which of the following represents an implicit cost of operating the bar?
a. Diane's wage. b. Sam's time. c. Diane's tips. d. Sam's tips. e. Both Diane's and Sam's tips.
The theory of education that states firms use educational attainment as a way of sorting between high-ability and low-ability workers is called
Microeconomics focuses on
A) individual decision makers. B) decisions only on small expenses. C) small changes in an economy. D) satisfying the specific needs of a community.