A product's price approaches its marginal cost as market concentration increases
Indicate whether the statement is true or false
FALSE
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The value-added approach of calculating GDP:
A. is especially useful when thinking about services involved in the resale of existing goods. B. lets us break down the total value paid and see how much of it was created at each step of the production process. C. is an alternative, and equally valid, way of avoiding the problem of double-counting. D. All of these are correct.
Suppose that this graph describes the current labor market for high school teachers:
Given an initial wage of w*, then immediately following a decrease in supply:
A. the reservation wage of each remaining teacher will fall. B. there will be a shortage of high school teachers. C. there will be an excess supply of high school teachers. D. the equilibrium wage will fall.
If a profit-maximizing firm is currently producing where MR = MC, it should
A. decrease output so that marginal revenue will be greater than marginal cost and the firm's profit will increase. B. exit the industry. C. not change because it is already maximizing profit. D. increase output so that marginal revenue is less than marginal cost.
What is a balance-of-payments surplus?
What will be an ideal response?