Which of the following is most likely to increase long-run aggregate supply in an economy?
What will be an ideal response?
A reduction in the cost of using computers
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A common misperception about consumer demand is that
A. demand depends on many other variables. B. price is a major determinant of quantity. C. it is a fixed amount. D. quantity cannot be determined in advance. E. All of these responses are correct.
Firm A is a monopoly because of network effects, whereas Firm B is a natural monopoly. Which of the following statements is likely to be true in this context?
A) The average total costs of both firms decrease as they increase their output. B) The value of the product that both firms produce increases with an increase in the number of buyers. C) Firm A enjoys a monopoly status because its average total cost decreases with increase in output, whereas Firm B enjoys a monopoly status because the value of its product increases as more consumers buy it. D) Firm B enjoys a monopoly status because its average total cost decreases with increase in output, whereas Firm A enjoys a monopoly status because the value of its product increases as more consumers buy it.
According to your textbook, pollution is a major social and political concern because
A) it is inefficient. B) it is always immoral. C) people disagree about rights, which are extremely difficult to resolve. D) the environment is on the verge of ecological catastrophe.
Refer to Figure 12-10. Total revenue at the profit-maximizing level of output is
A) $1,200. B) $2,500. C) $4,800. D) $6,000.