Refer to the graph shown, which depicts a perfectly competitive firm. When the industry is in long-run competitive equilibrium:
A. the price of the product will be $6.
B. the firm will produce 100 units of output.
C. the marginal cost of production will be $3.
D. the firm will earn economic profits of $300 per day.
Answer: B
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An increase in the supply of labor will, everything else equal,
a. increase the full-employment level of output b. decrease the full-employment level of output c. move the economy from a recession toward full employment d. reduce total employment e. have no impact on total employment
Everyone in the neighborhood has been complaining about the deteriorating condition of the park, but nobody has cleaned it up. Why not?
A. No single person's benefit from cleaning the park exceeds that person's cost of cleaning it. B. There is an excess demand for parks in the neighborhood. C. There is an excess supply of parks in the neighborhood. D. The social benefit of cleaning the park exceeds the social cost of cleaning it.
Use the following table to answer the next question and assume that the total fixed cost incurred by the firm is $500.OutputTotal Variable Cost1$400272031,00041,40052,00063,600The total cost associated with the production of 5 units of output is
A. $2,000. B. $2,500. C. $3,000. D. $1,500.
A monopolist earns $1,000,000 economic profit in the short run producing 25,000 units of a good. The marginal revenue of the 25,000th unit is $23 and the marginal cost is $30 . What should the monopolist do?
a. raise price and produce less than 25,000 units b. lower price and produce less than 25,000 units c. raise price and produce more than 25,000 units d. lower price and produce more than 25,000 units e. produce more than 25,000 units at the same price