Imagine that you own a firm that operates in a perfectly competitive industry. What will happen to the market price in your industry if you decide to triple your output?
Since each firm's market share is insignificant, your decision to triple your output will have no impact on
the market price.
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Two of the most important factors that influence total factor productivity are
A) the stock of knowledge that the world possesses and the associated level of technology. B) the quantity and quality of labor available in an economy. C) capital accumulation and the total level of investment in an economy. D) population growth rates and the geographic location of the population.
The domestic real interest rate (r) for a given country must be the same as the world real interest rate (rw) ________
A) if perfect capital mobility is assumed B) because with no barriers to capital flows, if rw > r domestic residents would just borrow abroad putting upward pressures on the domestic rate until both rates equal each other C) because with no barriers to capital flows, if rw < r domestic residents would only lend to foreigners putting downward pressures on the domestic rate until both rates equal each other D) all of the above E) none of the above
When firms form a cartel in an oligopoly market, the total output is always the same as if the market were perfectly competitive
a. True b. False Indicate whether the statement is true or false
In the short run, the firm should shut down when:
A. price is equal to the average total cost of production. B. price is less than the minimum of the average variable cost of production. C. price is equal to the minimum of the marginal cost of production. D. price is equal to the minimum of the average total cost of production.