What is the typical shape of a total product curve?
a. An S-shape
b. A U-shape
c. An inverted U-shape
d. A constantly increasing line
e. A constantly decreasing line
Ans: c. An inverted U-shape
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward
Do firms in a perfectly contestable market earn positive economic profit in the long run? Explain
What will be an ideal response?
The four important characteristics that define a perfectly competitive market are:
A. standardized good, full information, no transactions costs, participants are price takers. B. standardized information, finished good, no transactions costs, participants are price makers. C. standardized good, same information for buyer and seller, low transactions costs, participants are price takers. D. standardized good, full information, no transactions costs, participants are price makers.
A price ceiling imposed on a monopoly may:
A. drive the monopolist out of business. B. lead to no shortage. C. lead to a shortage. D. All of the statements associated with this question are correct.