The firm would have a better bargaining position if
a. The firm can easily replace the workers with machinery
b. The workers are a critical part of the production process
c. The workers are highly specialized and would not find employment elsewhere easily
d. Both A&C
d
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Moving along the aggregate supply curve, when the price level rises,
A) the quantity supplied decreases. B) the quantity supplied increases. C) the aggregate demand curve shifts rightward. D) the aggregate demand curve shifts leftward. E) the quantity supplied does not change because the aggregate supply curve is a vertical line.
A monopoly might produce less than the socially optimal amount of pollution because
A) it likes to be a good citizen. B) it sets price above marginal cost. C) it earns economic profit. D) it internalizes the external costs.
Product differentiation in monopolistically competitive markets ensures that ____ in equilibrium
a. marginal cost will exceed average revenue b. price will exceed marginal cost c. average variable cost will be declining d. marginal revenue will equal average total cost
Refer to Figure 3.1. If one of the graphs represents the total benefit of an activity, which other graph best represents the marginal benefit of the activity?
B. B
C. C
D. D