According to the theory of creative destruction, the greatest threat to a monopolist producer of electric typewriters is likely to be
a. government regulation
b. international competition
c. the entry of new electric typewriter producers
d. growth in the computer industry
e. stockholders demanding increased efficiency
D
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Suppose a firm has a variable cost function VC = 20Q with avoidable fixed cost of $50,000. For regulators, the first-best regulated price is ______; the second-best regulated price is ____.
A. $80; $480 B. $480; $105 C. $80; $105 D. $105; $80
One possible measure of gender discrimination is to look at the difference between the average male wage and the average female wage. This is a poor measure of discrimination for all of the following reasons except that men and women
A. might have different preferences when it comes to supplying labor. B. may differ in their taste for part-time jobs. C. may differ in their overall level of skill. D. may differ in their willingness to accept risky jobs. E. may differ in the return they receive for their skills.
Economic stagnation coupled with high inflation is commonly called:
A. stagflation. B. inflationary stagnation. C. stagnatory growth. D. inflagnation.
An increase in the amount of physical capital will cause
A. aggregate demand and aggregate supply to increase by the same amounts, causing real GDP to increase and the price level to remain constant. B. an increase in both aggregate demand and real GDP, but have no effect on the price level. C. an increase in both aggregate supply and real GDP and a reduction in the price level. D. an increase in both aggregate supply and real GDP, but have no effect on the price level.