The existence of a monopoly:
A. creates market inefficiencies.
B. causes consumers to get less at a higher price.
C. causes a reduction in total surplus.
D. All of these statements are true.
D. All of these statements are true.
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The marginal revenue product of labor equals
a. MP/wage b. change in total revenue/change in units of labor c. change in total revenue times the change in units of labor d. P/MP e. MP ? wage
The classical theory of inflation illustrates the relationship among:
A. money supply, output, and the overall level of prices. B. spending, saving, and the overall price level. C. savings, investment, and the interest rate. D. money supply, savings, and investment.
In order to identify their used cars as plums (high-quality), many used car dealers:
A. raise the minimum price of plums (high-quality). B. advertise their prices. C. offer money-back guarantees. D. raise the minimum price of lemons (low-quality).
A perfectly competitive firm should continue to operate even at a loss in the short run if
A. it can cover its variable costs of production. B. its revenues are less than its fixed costs. C. it has some fixed costs that cannot be brought down to zero. D. its output is above the break-even point.