For a firm in monopolistic competition, selling costs
A) increase costs and reduce profits.
B) always increase demand.
C) can change the quantity produced and lower the average total cost.
D) can lower total cost.
E) have no effect on the quantity sold.
C
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The number of highly skilled and knowledge workers entering the workforce increases when
(a) firms substitute capital for high priced labor. (b) the market demands labor with advanced degrees. (c) the government cuts educational funding. (d) All of the above
The marginal revenue product
A) represents the incremental contribution to the firm's total revenues obtained from an increase in a variable input. B) always increases when there is an increase in a variable input. C) gives the increase in cost when there is an increase in a variable input. D) gives the change in total product when an additional unit of a good is hired.
The Fed purchases of long-term assets to stabilize financial markets, reduce long-term interest rates, and improve the investment environment are called: a. structural adjustments. b. financial strengthening. c. quantitative easing
d. inflation targeting. e. stress testing.
A firm employs 15,000 workers and has annual revenues of over $750 million. Knowing this, we also know that the firm is in what type of market structure?
a. monopoly b. oligopoly c. monopolistic competition d. perfect competition e. impossible to tell what market structure the firm is in