If a monopolist is producing at that output where price equals average variable cost in the short run, then it is earning a negative profit
a. True
b. False
Indicate whether the statement is true or false
True
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An industrial union is
A) a union composed of public employees. B) a union composed of workers who are in a specific geographic area. C) a union composed of workers who are employed in a particular industry. D) a union composed of workers who engage in a particular trade or skill.
If a firm with a 20 percent market share merges with a firm with 5 percent of the market, by how much will the Herfindahl index change? The other firms have 40 percent, 15 percent, 10 percent, and 10 percent shares
a. It rises by 100. b. It rises by 200. c. It falls by 100. d. It falls by 200. e. It rises by 25.
Assuming a firm is selling its output in a purely competitive market, its resource demand curve can be determined by:
A. multiplying total product by product price. B. multiplying marginal product by product price. C. dividing total revenue by marginal product. D. comparing marginal product with various possible input prices.
For this question, assume that expectations of productivity are slow to adjust. Further assume that A had been increasing by 2% a year. Now suppose that A increases by 5% in period t. This increase in productivity growth will cause
A) the real wage to rise and no change in the natural rate of unemployment. B) the WS relation to shift up more than the PS relation. C) the natural rate of unemployment to fall. D) the real wage to fall.