In the long run, firms in monopolistic competition have excess capacity.
Indicate whether the statement is true or false
Ques. 2According to a 1963 edition of the Effingham Daily News, Illinois Consolidated Telephone Co switched from the switchboard system to the dial system at 12:01 a.m. Sunday, Aug. 18, 1963. Thirty miles of cable supported the new high-tech system.
It took four weeks to lay the telephone lines that allowed Effingham residents to directly connect to each other through the telephone. How does the switch from the switchboard system to the dial system impact the labor market for switchboard operators? A) Increased the demand for telephone operators
B) Increased the supply for telephone operators
C) Decreased the marginal productivity of telephone operators
D) Decreased telephone operators' value of marginal product
Ques. 3The table above shows the marginal costs and marginal benefits of college education. The efficient amount of enrollment is
A) 12 million.
B) 20 million.
C) 16 million.
D) 24 million.
Ques. 4Americans are always connected today, talking on the phone at home, while driving down the road and while shopping for groceries. But that wasn't always the case.
In fact, it wasn't that long ago people had to go through an operator in order to get connected with the person they were trying to reach. How do cell phones impact the labor market for telephone operators? A) Decreased telephone operators' value of marginal product
B) Increased the demand for telephone operators
C) Increased the supply for telephone operators
D) Decreased the marginal productivity of telephone operators
Ques. 5In the above figure, the minimum efficient scale of output is
A) 5,000 pounds of coffee.
B) 10,000 pounds of coffee.
C) 13,000 pounds of coffee.
D) 15,000 pounds of coffee.
Ques. 6The big tradeoff refers to the tradeoff between
A) work and leisure.
B) equity and efficiency.
C) public goods and private goods.
D) taxes and transfers.
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