If the government provides a subsidy of $1 per hour to employers for hiring workers, ________
A) the equilibrium real wage will increase B) labor demand will decrease
C) the equilibrium employment will decrease D) labor supply will increase
A
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Refer to the scenario above. In the dominant strategy equilibrium, the payoff to Firm B is ________
A) $1.2 million B) $3.0 million C) $2.5 million D) $2 million
When a firm increased its output by one unit, its AC rose from $45 to $50. This implies that its MC is
A) $5. B) between $45 and $50. C) greater than $50. D) Cannot be determined from the above information
The key element in preserving a monopoly is keeping rivals out of the market.
Answer the following statement true (T) or false (F)
Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary