Refer to Figure 4.2. The marginal rate of substitution for economics books with CDs is highest at point:
A. A.
B. B.
C. C.
D. D.
A. A.
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Which of the following would increase the price of a firm's stock?
a. an decrease in demand for the firm's products b. the emergence of a promising new competitor c. the approval of a new patent for the firm d. an increase in the interest rate e. the threat a major lawsuit against the firm
Choose the letter of the diagram in Figure 16.1 that monetarists would use to illustrate the effect of an increase in the quantity of money on the economy.
A. a. B. b. C. c. D. d.
Perfectly competitive markets tend to have a ______ number of sellers and a(n) ______ entry.
a. large; easy b. large; difficult c. small; easy d. small; difficult
Figure 6.5 shows the short-run and long-run effects of an increase in demand of an industry. The market is in equilibrium at point A, where 100 identical firms produce 6 units of a product per hour. If the market demand curve shifts to the right, what has happened to an individual firm's output level at point B?
A. Each firm produces two more units per hour. B. Each firm produces relatively smaller level of output as more firms enter the market. C. Each firm will produce the same level of output. D. None of these