If AC > p where MR = MC
A) firms earn positive profits and new firms will enter.
B) firms earn negative profits and existing firms will leave.
C) firms earn zero profits and new firms will not enter and no existing firms will leave.
D) None of the above.
B
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Refer to the scenario above. Which of the following is true, if the individual is optimizing in levels?
A) An optimizer will rent the hotel room for three days, if the net benefit of staying for the third day is negative. B) An optimizer will rent the hotel room for three days, if the cost of staying for two days exceeds the cost of staying for three days. C) An optimizer will rent the hotel room for three days, if the net benefit of staying for three days exceeds the net benefit of staying for two days. D) An optimizer will rent the hotel for three days, if the total benefit of staying for three days exceeds the total benefits of staying for two days.
Refer to Figure 2-4. A movement from ________ is the result of negative technological change in plastic production
A) V to X B) Z to Y C) X to W D) W to Z
Which of the following is a political function of government but is not a central economic function?
A) determining who has a right to vote B) determining government-sponsored and government-inhibited goods C) providing a legal system to adjudicate property rights D) redistributing income from some individuals to others
Using anti-trust law to break up a monopoly
a. will increase economic efficiency b. makes sense if the market would function well under competitive conditions c. makes sense if the monopoly resulted from network externalities d. makes sense if the monopoly resulted from a patent or copyright e. would increase producer surplus