In the dominant firm model as evidenced by the production of iPods by Apple, the entrance of the competitive fringe firms has what effect on the dominant firm?
A) Its price is lower, but it produces more output.
B) Its price is lower, and it produces less output.
C) Its price is the same, but it produces less output.
D) Its price is higher, but it produces more output.
A
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For a long time, your firm has been paying its workers a wage of $20 per hour and your employees have been happy to work 40 hours per week at this wage
Business is suddenly booming and your firm would really like your workers to agree to a 50-hour work week in order to meet this new demand for your product. You are considering two strategies. Under the first, you would raise the wage for all hours worked from $20 per hour to $22 per hour; under the second, you would leave the wage for the first 40 hours per week at $20 but offer $30 per hour for hours worked above 40 hours (that is, you would offer time and a half for overtime). Both strategies have the same cost of $1,100 if a worker chooses to work 50 hours. Which strategy is more likely to lead your employees to agree to a 50-hour work week?
The substitution effect in the labor supply decision refers to
a. substituting leisure for work as the wage rate rises b. substituting market work for nonmarket work as the wage rate falls c. working more hours as the wage rate falls d. working fewer hours as the wage rate rises e. substituting market work for leisure or nonmarket work as the wage rate rises
If price elasticity of supply is large and demand is price-inelastic, then the firm can earn positive profits by increasing the price
a. True b. False Indicate whether the statement is true or false
Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B