Marginal analysis is useful to a firm that seeks to
A. maximize its profits, but not minimize its losses.
B. minimize its losses, but not maximize its profits.
C. both maximize its profits and minimize its losses.
D. neither maximize its profits nor minimize its losses.
C. both maximize its profits and minimize its losses.
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Economic terms like “cost of living” and “price level” are important to ordinary individuals.
Answer the following statement true (T) or false (F)
A sudden increase in immigration would be considered a(n):
A. short-run supply shock. B. long-run supply shock. C. interest-rate shock. D. A change in immigration would not affect any of these.
Which of the following attitudes will be held by a typical firm in a typical cartel?
A. If I alone cheat, I’m better off; if everyone cheats, I’m worse off. B. I can never do better for myself than by following agreed-upon cartel policies. C. If everyone cheats, I’m better off and so is everyone else in the cartel. D. If I suspect others are planning to cheat, I’ll do best for myself by deciding not to cheat.
Which type of market structure contains a single buyer?
a. Monopoly. b. Monopsony. c. Oligopoly. d. Oligopsony.