Based on the graphic for perfect competition versus monopoly, which is the highest number?
a. PM
b. MC
c. PPC
d. ATC
a. PM
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The short-run average total cost, average variable cost, and marginal cost curves are all U-shaped because of
i. constant total fixed cost. ii. increasing and then decreasing marginal returns as more labor is hired. iii. economies and diseconomies of scale as the plant size increases. A) only i B) only ii C) i and iii D) ii and iii E) i, ii, and iii
When a tax is imposed on the suppliers of a good or service, then
A) in general, the producers pay all the tax. B) in general, the consumers pay all the tax. C) the consumers pay a larger part of the tax as the elasticity of demand for the product becomes smaller. D) the consumers pay a larger part of the tax as the elasticity of demand for the product becomes larger.
A firm sells in a competitive market in which price is $10. Its marginal cost is 2 + 0.5Q. Determine the profit-maximizing level of output.
What will be an ideal response?
If the central bank keeps the money supply growth rate constant, but people raise their inflation expectations by 1 percentage point, then the short-run Phillips curve shifts
a. right and the unemployment rate rises. b. right and the unemployment rate falls. c. left and the unemployment rate rises. d. left and the unemployment rate falls.