If a firm can adjust its employment of all inputs, then it is
a. experiencing economies of scale.
b. in the long run.
c. off its expansion path.
d. limited only by the capacity of its fixed capital.
b. in the long run.
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Refer to the figure above. What is the equilibrium wage rate and equilibrium level of employment?
A) $35 and 10 units of labor B) $20 and 15 units of labor C) $15 and 35 units of labor D) $25 and 20 units of labor
Suppose you were asked, "Can you guess the height of the tallest living man? Is it more than 8 feet?" When people suggest an answer in the question they ask, it is a form of:
A. anchoring. B. rule of thumb. C. time inconsistency. D. positive framing.
Suppose two firms are in a game situation, and they each must decide on a strategy regarding whether to select a high price or a low price Profits for a firm are highest when it selects a low price, while the other selects a high price; profits are lowest if one selects a high price, while the other selects a low price; profits are in between when both select low prices; and profits are slightly higher when both select high prices. In the absence of collusion we expect
A) one of the firms to select a high price and the other a low price. B) one firm to select a high price and the other a low price in the first period, followed by a reversal in the second period. C) both to select high prices. D) both to select low prices.
An example of a monopolistically competitive industry would be:
A. steel. B. soybeans. C. retail clothing. D. electricity.