If unemployment benefits became more generous it would be likely to _____ frictional unemployment and _____ the natural rate of unemployment:
a. Increase; increase
b. Increase; not change
c. Not change; increase
d. Increase; decrease
a
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A collusive agreement between two duopolists is similar to the prisoners' dilemma because in both games
A) the best outcome is always achieved. B) each players strategy depends on what the other player does. C) the Nash equilibrium is not the best outcome for the players. D) All of the above answers are correct.
In the long run, firms in both monopolistically competitive markets and perfectly competitive markets earn zero economic profits, but unlike perfectly competitive firms in the long run, monopolistically competitive firms
A) charge a price that is equal to marginal cost. B) charge a price that is equal to average total cost. C) do not produce at minimum average total cost. D) charge a price that is greater than average revenue.
Once a firm incurs diminishing marginal returns, total product will begin to decline as more of the variable input is employed
Indicate whether the statement is true or false
If the economy is in long-run equilibrium, the actual unemployment rate is less than the natural unemployment rate
Indicate whether the statement is true or false