Two identical firms that share a market and produce a homogeneous good will find which of the following market outcomes LEAST desirable?
A) Bertrand Oligopoly
B) Cournot Oligopoly
C) Cartel
D) All are equally preferable.
A
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Assuming no change in the nominal exchange rate, how will a lower rate of inflation in the United States relative to Canada affect the real exchange rate between the two countries? (Assume the United States is the "domestic" country.)
A) The real exchange rate will rise. B) The impact on the real exchange rate cannot be predicted. C) The real exchange rate will be unaffected. D) The real exchange rate will fall.
According to the permanent income hypothesis, permanent income is to ________ as transitory income is to ________
A) consumption; saving B) certain; hypothetical C) wealth; gambling D) saving; borrowing
In the linear breakeven model, a firm incurs operating losses whenever output is less than the breakeven level
a. true b. false
Suppose a certain firm is able to produce 165 units of output per day when 15 workers are hired. The firm is able to produce 181 units of output per day when 16 workers are hired, holding other inputs fixed. The marginal product of the 16th worker is
a. 10 units of output. b. 11 units of output. c. 16 units of output. d. 181 units of output.