In the short run, a firm can:
a. change its machinery, but not the number of workers.
b. change the number of workers, but not its machinery.
c. change its machinery, but not the number of workers.
d. change the number of workers, but not its machinery.
b
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A firm in a competitive labor market will hire labor until the value of marginal product of labor equals the
A) firm's marginal revenue. B) firm's marginal cost. C) firm's average cost. D) wage rate.
Why might network externalities result in products that contain inferior technologies?
What will be an ideal response?
If a new government adopted some ill-advised regulations causing the economy to be less efficient ________
A) the ensuing negative supply shock would lead to an immediate rise in inflation B) in the short-run this would create a negative output gap but eventually the previous general equilibrium would be restored by subsequent rightward shifts of the AS curve C) there would be no permanent changes in output and inflation D) all of the above E) none of the above
A situation in which an individual has no information about probabilities and the underlying distributions of the possible outcomes of an investment choice is called:
a. a prior distribution. b. updating. c. risk tolerance. d. pure uncertainty.