As a firm in monopolistic competition sets the price for its product, the firm faces a tradeoff between
A) supply and demand.
B) efficiency and equity.
C) internal and external economies of scale.
D) price and the quantity it can sell.
E) its marginal revenue and its price.
D
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Two nations can produce computers and software in the amounts given in the table above
Does either nation have an absolute advantage in producing the products? Which nation has a comparative advantage in computers? Which nation has a comparative advantage in software? Explain your answers.
When the invisible hand is at work,
A. the price system will sometimes give incorrect cost signals to consumers. B. the price system will allocate resources based only on consumer need. C. all prices will be set equal to marginal costs. D. there will be some shortages and surpluses that cannot be avoided.
A firm's marginal resource cost curve is
a. horizontal only if the firm is a price taker in the product market b. horizontal only if the firm is a price taker in the resource market c. vertical only if the firm is a price taker in the product market d. vertical only if the firm is a price taker in the resource market e. horizontal only if the firm is a price taker in both the product and resource markets
Writing in the Wall Street Journal in 2009, economist Jeremy Siegel argued that, in the years leading up to the financial crisis of 2008–2009,
a. financial firms acted in too risky a fashion. b. the Federal Reserves's efforts to rein in the risky behavior of certain financial firms were inadequate. c. falling house prices "crashed the banks and the economy.". d. All of the above are correct.