A good with an income elasticity of 2.3 is:
A. a necessity.
B. a luxury.
C. inferior.
D. a complement.
Answer: B
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All of the following are measures of market power except the:
A) Lerner Index. B) Minimum-Efficient Scale Index. C) four-firm concentration ratio for an industry. D) Herfindahl-Hirschman Index.
During business contractions, the growth rate of Solow residuals is ________
A) near or below zero B) well above zero C) approaching infinity D) impossible to calculate
Which two curves tell you whether or not you've achieved maximum profit?
a. P and MR b. MR and MC c. MC and TC d. P and AVC e. AVC and ATC
Which of the following is not true for a competitive firm?
A.) The marginal cost curve is the short-run supply curve. B.) The marginal cost curve is horizontal at the equilibrium price. C.) The marginal cost curve shifts downward when productivity increases. D.) The marginal cost curve shifts upward when wages increase.