Sun's Gas Station is a firm operating in a perfectly competitive industry. Sun's Gas Station sells each gallon of gas for $3. What is the marginal product from hiring the fourth worker?
A) 70 gallons of gasoline
B) 280 gallons of gasoline
C) 40 gallons of gasoline
D) 80 gallons of gasoline
C
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Over the last 30 years, the income gap between the rich and the poor has declined.
Answer the following statement true (T) or false (F)
Refer to Figure 3-5. At a price of $5,
A) there is a scarcity of 4 units. B) there is a surplus of 4 units. C) there is a shortage of 4 units. D) there is a shortage of 6 units.
Currency substitution means
(a) use of money instead of barter. (b) use of countertrade instead of money. (c) use of foreign exchange instead of domestic currency. (d) all of the above. (e) none of the above.
When a perfectly competitive firm experiences positive economic profits
A) the high barriers to entry prevent further competition. B) existing firms exit the industry. C) additional firms enter the industry. D) firms have no incentive to exit or enter the industry.