A competitive firm facing a perfectly elastic demand curve can:
a. increase price without losing any sales
b. sell all of its output at any price it chooses.
c. sell all of its output at the market price.
d. sell more output only by reducing its price.
c
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Economic growth is measured by the percentage change in:
A. potential nominal GDP. B. structural unemployment. C. inflation D. potential real GDP (LRAS).
The attempt by Al-Qaeda terrorists to board a train between Belgium and France with machine guns was an example of the "rational terrorist's"
A. marginalist technique. B. diversion technique. C. compression effect. D. substitution effect.
A mining company has the opportunity to extract from a coal reserve this year for a profit of $40 per pound. The current market rate of interest is 5 percent. The present value of this future extraction is:
A. $36 B. $38 C. $40 D. $42
Which of the following factors of production is not variable in the long run?
a. the size of the firm's plant b. land c. highly skilled labor d. All factors are variable in the long run.