Firm A is a monopoly. The demand for its output is p = 90 - Q. Production is such that Q = L. Firm A hires labor in a competitive market where the wage is $10. Firm A will hire
A) 10 units of labor.
B) 20 units of labor.
C) 30 units of labor.
D) 40 units of labor.
D
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Prisoners in World War II POW camps traded products for other products, a process referred to as
A) central planning. B) advantage exchange. C) barter. D) rationing.
When a company is faced by a kinked demand curve, the marginal revenue curve
A) will be upward sloping. B) will be horizontal. C) will always be zero at the quantity produced. D) will be discontinuous.
Suppose a state discovered chemical compounds in their water. The source of these chemicals is the waste discharges of industrial plants in another state. This is an example of a(n):
a. market failure where the market price of the output of these industrial plants does not fully reflect the social cost of producing these goods. b. external cost imposed by the industrial plants of another state. c. externality where the marginal social costs of producing these industrial goods differ from the marginal private costs. d. all of these.
Drawing the supply curve and the demand curve on the same graph helps show how price is determined
a. True b. False Indicate whether the statement is true or false