A sudden fall in the market demand in a competitive industry leads to
a. A short run market equilibrium price lower than the original equilibrium
b. A market equilibrium price higher than the short run price
c. Some firms exiting the market
d. All of the above
d
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According to Rosenberg (2004), the U.S. economy between the Civil War and World War II was relatively poor in which of its productive resources?
(a) Land (b) Labor (c) Capital (d) Entrepreneurial talent
Core inflation is measured because the prices of:
A. nondurable goods fluctuate more frequently than the prices of durable goods; therefore, removing them from the basket prevents potential distortion. B. durable goods fluctuate more frequently than the prices of nondurable goods; therefore, removing them from the basket prevents potential distortion. C. food and energy costs fluctuate frequently and can distort actual changes in the cost of living. D. retail consumption items fluctuate frequently and can distort actual changes in the cost of living.
Refer to the above supply and demand graph for a public good. Which line segment indicates the amount by which the marginal benefit of this public good is greater than the marginal cost?
A. ef B. de C. da D. ab
If the first copy cost of a music video is $223,000 and the marginal cost is $0, how much is the average total cost if the firm produces 1 million copies?
A. 22.3 cents B. 0.223 cents C. 1,223,000 D. 223,000,000,000