In a perfectly competitive labor market, if any one firm decreases the amount of labor it employs, the most likely result will be that the
a. market wage rate will rise
b. firm's revenue and cost will fall
c. market wage will fall
d. firm's revenue and cost will rise
e. firm's revenue will fall, but its cost will remain unchanged
B
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In both monopolistic competition and non-price-discriminating monopoly,
a. the marginal revenue curve lies above the average revenue curve b. the marginal revenue curve lies above the demand curve c. the marginal revenue curve lies below the demand curve d. marginal revenue is equal to average revenue e. marginal revenue is equal to price
A stable monetary environment will typically lead to a. inflation
b. producers and consumers better coordinating their decisions through markets. c. independence of central banks. d. increased trade deficits and limited budgets deficits.
In the national income accounts, new investment goods are considered
A. intermediate goods, and therefore, not counted. B. final goods. C. subtractions from final output. D. depreciated goods.
Which of the following is true about advertising?
A. Firms spend money on advertising in an attempt to make the demand curve more elastic. B. Advertising may be the only way that a new entrant can penetrate a market dominated by long-established firms. C. Advertising has no impact on entry costs or market structure. D. Firms consider advertising to be successful if it succeeds in lowering the long-run average cost.