The table above gives the total cost information for a perfectly competitive firm. What is the profit-maximizing quantity of output?
a. 4
b. 6
c. 3
d. 5
d. 5
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If each player responds by imitating the action of his opponent in the previous round of a repeating game, the players are following a:
A. commitment strategy. B. collusion plan. C. repeated cooperation agreement. D. tit-for-tat strategy.
In the U.S. economy, rents are the smallest source of household income.
Answer the following statement true (T) or false (F)
(a) Fill in Table. (b) Is the firm a perfect or an imperfect competitor? Explain. (c) If the wage rate were $115, how many workers would be hired? How much would the total wage bill come to? (d) If the wage rate were $60, how many workers would be hired? How much would the total wage bill come to? (e) How many workers would be hired if the wage rate were $16? (f) How many workers would the firm want to hire if the wage rate were $0?
If a typical monopolistically competitive firm is making short-run losses, then
A) as some firms leave, the demand for the products of the remaining firms will become more elastic. B) other more competitive firms will enter the market. C) as some firms leave, the remaining firms will experience an increase in the demand for their products. D) the industry will eventually cease to exist.