Which of the following is a key characteristic of the long-run competitive equilibrium that distinguishes it from the short-run competitive equilibrium?
A. Free entry to reduce short-run profits, or free exit to reduce short-run losses.
B. Economic profits are positive, but cannot be negative.
C. Marginal revenue is greater than marginal cost.
D. Average revenue is less than average cost.
Answer: A
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John is trying to decide how to divide his time between his job as a stocker in the local grocery store, which pays $7 per hour for as many hours as he chooses to work, and cleaning windows for the businesses downtown. He makes $2 for every window he cleans. John is indifferent between the two tasks, and the number of windows he can clean depends on how many hours he spends cleaning in a day, as shown in the table below:Hours PerDay CleaningWindowsTotal Numberof WindowsCleaned0017211314416517A second hour cleaning windows will yield additional earnings of ________.
A. $8 B. $7 C. $14 D. $2
If a manager's expected marginal cost exceeds their expected marginal revenue, which of the following is true?
A) The manager is maximizing expected profit. B) To maximize expected profit, the manager should increase production. C) The expected profit from producing another unit is negative. D) The expected profit from producing another unit is positive.
Computer programs or software are an example of:
a. land. b. labor. c. capital. d. none of these.
When traders perceive a permanent money supply adjustment, long-term nominal interest rates ___ affected, the expected exchange rate ____ affected, and the spot exchange rate ___ affected.
a. are not; is; is b. are; is; is not c. are not; is not; is not d. are; is not; is