If consumers view the output of any firm in a market to be identical to the output of any other firm in the market, the demand curve for the output of any given firm
A) will be identical to the market demand curve.
B) will be horizontal.
C) will be vertical.
D) cannot be determined from the information given.
B
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Refer to Figure 15-19. If the monopoly firm is not allowed to price discriminate, then consumer surplus amounts to
a. $3,125.
b. $1,562.50.
c. $0.
d. $6,250.
The following graph shows the production possibilities curve for the economy with only two members, Silvia and Art. Silvia can produce either 50 pounds of beef or 2 computers per week, and Art can produce 100 pounds of beef or 1 computer per week. Both of them work 40 weeks per year.
How much of each good is produced if each worker fully specializes according to comparative advantage?
A. 4,000 pounds of beef and 80 computers B. 6,000 pounds of beef and 120 computers C. 8,000 pounds of beef and 120 computers D. 6,000 pounds of beef and 160 computers
If a firm pays its workers $10 per hour, the marginal product of labor is 5 units per hour, and the price of the firm's product is $15 per unit, what is the price elasticity of demand facing the firm?
A) -1.15 B) -2.15 C) -1.0 D) -3.56
Microfinance is aimed at encouraging entrepreneurs among the very poorest parts of the developing world to relocate to high-income countries.
Answer the following statement true (T) or false (F)