The above figure shows the situation of a monopolistic competitor in the short run. The maximum economic profits of the firm equal
A. $30,000.
B. $50,000.
C. zero.
D. 15,000.
Answer: A
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Evaluate computer database dating services in terms of efficiency. Why have many people avoided these services despite their vast amounts of information? Why might these services become more popular in the future?
What will be an ideal response?
Which of the following is an implication of the law of diminishing returns?
A. Total output will decline as more workers are hired. B. In the long run, average total cost will eventually decline as output is expanded. C. In the short run, expansion of output will eventually lead to increases in marginal cost and average total cost. D. A doubling of all inputs will lead to more than a doubling of output.
The following graph shows the production possibilities curve for the economy with only two members, Silvia and Art. Silvia can produce either 50 pounds of beef or 2 computers per week, and Art can produce 100 pounds of beef or 1 computer per week. Both of them work 40 weeks per year.
Silvia's opportunity cost of producing one computer is ________ pounds of beef.
A. 1/50 B. 25 C. 1/25 D. 50
Explain why it was necessary to pass the Clayton Act when the Sherman Act had already addressed the antitrust issue.
What will be an ideal response?