An unexpected sharp reduction in inflation will most likely result in
a. the rapid growth of output and employment.
b. a reduction in the actual rate of unemployment.
c. a reduction in the natural rate of unemployment.
d. a temporary increase in unemployment and a decline in real output.
D
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Sticky Cakes is a bakery. A decrease in the wage rate that Sticky Cakes pays its workers
A) does not shift its MC curve or its ATC curve. B) shifts its MC curve downward but not its ATC curve. C) shifts both its MC curve and its ATC curve downward. D) does not shift its MC curve but shifts its ATC curve downward.
If Bristol-Myers Squibb discovered a miracle drug that cured some forms of cancer, which theory would apply to the profits it earned?
A. Reward for innovation B. Reward for risk-taking C. Monopoly profits D. All of choices are true.
What is the firm experiencing when LRATC does not vary with output?
a. economies of scale
b. flexibilities of scale
c. constant returns to sale
d. diseconomies of scale
A monopoly which arises from significant economies of scale is referred to as a
A) monopolistic competitor. B) strategic resource monopoly. C) natural monopoly. D) patent monopoly.