Under perfect competition and monopolistic competition, profits are zero in long-run equilibrium
a. True
b. False
Indicate whether the statement is true or false
True
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Which is of the following statements is correct?
A. If demand decreases, then price will decrease. B. If price decreases, then demand will decrease. C. If demand increases, then price will decrease. D. If price increases, then demand will decrease.
Answer the following statement(s) true (T) or false (F)
1. A Cournot equilibrium arises when one player announces his strategy before the other. 2. The Stackelberg equilibrium of a sequential game must also be a Nash equilibrium. 3. In a sequential game, guaranteed commitment to a strategy will make a player worse off. 4. A merger between Gateway, a manufacturer of computers, and Logitech, a manufacturer of components for computers, would be an example of horizontal integration. 5. The Sherman Act of 1890 and the Clayton Act of 1914 gave courts the power to prevent mergers that reduce competition and provided clear criteria to apply in determining when a merger would do so.
Spending on the structures, equipment, and software that provide the industrial capacity to produce goods and services for all sectors of the economy is called:
A) inventory investment B) business fixed investment C) residential fixed investment D) consumption
Zippy Car Wash on Main Street needs at least one worker to operate. That one worker can clean 10 cars in an hour. If a second worker is present, 18 cars can be washed per hour. With three workers, 25 cars can be washed per hour. With a full staff of four workers, 30 cars can be washed per hour. What is the marginal product for number of workers at Zippy Car Wash?
a. the total number of cars that can be washed with four workers b. the cost of wages and benefits for Zippy’s workers c. the optimal staffing level for the car wash d. the per worker change in the number of cars that can be washed per hour