Draw a supply curve, S1. Then draw a less elastic supply curve, S2.
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Economic theory assumes people will not do what is in the interest of all unless it is in the interest of
A) each. B) humanity. C) the government. D) the public. E) their own pocketbooks.
Refer to Figure 12-1. If the firm is producing 200 units
A) it should increase its output to maximize profit. B) it is making a loss. C) it breaks even. D) it should cut back its output to maximize profit.
A study of New York City (NYC) tax rates concluded that taxes on the nonmanufacturing sector should be higher since that sector has fewer alternatives. Manufacturers are more mobile and may move to avoid higher taxes. This means that
A. nonmanufacturing firms have a more elastic demand for the NYC locations. B. manufacturing firms have an inelastic demand for the NYC locations. C. nonmanufacturing firms have relatively inelastic demand for the NYC locations. D. nonmanufacturing demand for the NYC locations is perfectly elastic.
Use the above table. If the marginal revenue product is $20, how many workers will the profit maximizing monopsonist hire?
A) 1 B) 2 C) 3 D) 4