Suppose that the supply curve remains unchanged. If the demand curve shifts to the right,
A. the market clearing price definitely will increase.
B. there will be no change in the market clearing price.
C. the market clearing price definitely will decrease.
D. the market will collapse.
Answer: A
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Total profit is maximized where
A. MR = MC. B. marginal profit is zero. C. the slope of the marginal profit curve is zero. D. All of the responses are correct.
Beach resorts raise their prices during the summer months and yet more people book rooms at those times. Is this a violation of the law of demand?
Which of the following will tend to lower the ability of a union to increase the wages of its members?
a. strong competition from nonunion labor b. threat of a strike c. increased demand for union labor d. all of the above
In the short run when the marginal product of labor ________, the marginal cost of an additional unit of output _________.
A) rises; rises B) falls; falls C) rises; falls D) falls; doesn’t change