The above figure shows the short run cost curves for a typical firm in a competitive market. If price = 4, then the firm
A) is earning positive profits.
B) should produce 35 units.
C) should shut down.
D) None of above.
C
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In the Romer model, as more labor is devoted to research and development there is ________
A) an immediate increase in output per capita and a permanent increase in output per capita B) an immediate decrease in output per capita and a permanent increase in output per capita C) an immediate increase in output per capita and a permanent decrease in output per capita D) an immediate decrease in output per capita and a permanent decrease in output per capita
Normative economics deals with
a. how the economy actually works b. how a change in government budgets affects the price level c. how prices are determined in specific markets d. value judgments e. the historical growth of an economy
In Figure 13-3, demand curve CAD represents a market in which oligopolists will match the price changes of rivals and demand curve EAB represents a market in which oligopolists will ignore the price changes of rivals. According to the kinked demand model, the relevant demand curve will be
A. demand curve CAB. B. demand curve CAD. C. demand curve EAD. D. demand curve EAB.
An understanding of the best ways to produce goods and services is called
a. human capital. b. physical capital. c. technology. d. productivity.