The equation (MPL/PL) = (MPK/PK) represents
A. profit maximization.
B. the short-run production function.
C. diminishing marginal returns.
D. cost minimization.
Answer: D
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All evidence points to the fact that firms' market power within an industry and industry concentration ratios are
a. directly related, that is, firms' market power is high when concentration ratios are high b. inversely related, that is, firms' market power is low when concentration ratios are high c. totally unrelated, that is, they are directly related in some industries and indirectly related in others d. only moderately related, depending on the degree of competition in the industry e. low for monopoly and high for perfect competition
The proportion of minimum-wage earners who are in families with incomes below the poverty line is
a. less than one-third. b. between one-third and one-half. c. between one-half and two-thirds. d. greater than two-thirds.
A positive temporary supply side shock will:
A. increase the level of potential output in the long run. B. decrease the price level in the long run. C. increase the price level in the long run. D. have no effect in the long run.
Table 25.2Pool SweeperOutput (Revenue)Market Share (%)North Star$20,000 Hurricane$16,000 Blue Lagoon$2,000 Clean Sweep$2,000 Refer to Table 25.2. Assume there are only four firms in the pool sweeper industry. What is the Herfindahl-Hirschman Index for this industry?
A. 4,125. B. 50. C. 4,150. D. 2,500.