Marginal cost is the minimum price that producers must receive to induce them to produce another unit of a good or service.
Indicate whether the statement is true or false
Ques. 2Price discrimination takes place when a firm
A) charges the same price for all the units of its product that it sells.
B) charges different prices for different units of its product.
C) is discriminated against by consumers.
D) None of the above answers is correct.
Ques. 3What is economic profit?
What will be an ideal response?
Ques. 4If there is a permanent decrease in demand in a perfectly competitive market, then there is an initial ________ in price and existing firms ________.
A) rise; make an economic profit
B) rise; incur an economic loss
C) fall; make an economic profit
D) fall; incur an economic loss
Ques. 5The price of a computer is 1,000 and the price of a car is 12,000. What is the relative price of a car? What is the relative price of a computer?
What will be an ideal response?
Ques. 6If a salesperson is paid by the volume of sales he or she makes, then the
A) moral hazard problem is diminished.
B) moral hazard problem is enhanced.
C) adverse selection problem is enhanced.
D) None of the above answers is correct.
Ques. 7________ in the currency drain ________ the money multiplier.
A) A decrease; does not change
B) An increase; increases
C) A decrease; decreases
D) An increase; decreases
Ques. 8Is utility another word for the cost we give up when we consume a good?
What will be an ideal response?
Ques. 9In the figure above, in the market for low-skilled labor, the equilibrium wage rate is
A) 16.
B) 8.
C) 20.
D) 28.
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