When existing firms leave a perfectly competitive market, it causes:
A) an increase in the profitability of existing firms.
B) a decrease in the profitability of existing firms.
C) a right shift in the demand curve of the good being produced by the firms.
D) a left shift in the demand curve of the good being produced by the firms.
A
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The short-run demand curve for labor for a firm in any type of market for its output coincides with
a. the upward sloping portion of the marginal revenue product curve. b. the downward sloping portion of the marginal revenue product curve. c. the downward sloping portion of the marginal product curve. d. the marginal labor cost curve.
________ is to the random walk hypothesis as ________ is to behavioral economics
A) Sober calculation; paternal guidance B) Surprise; gratification C) Rational ignorance; studied optimization D) Unpredictability; regret
By selecting a bundle where MRS = MRT, the consumer is
A) achieving a corner solution. B) reaching the highest possible indifference curve she can afford. C) not behaving in an optimal way. D) All of the above.
Suppose roses are currently selling for $30 per dozen, but the equilibrium price of roses is $20 per dozen. We would expect a
a. shortage to exist and the market price of roses to increase. b. shortage to exist and the market price of roses to decrease. c. surplus to exist and the market price of roses to increase. d. surplus to exist and the market price of roses to decrease.