Based on the data in the table above, the efficient level of output equals
A) 550 units.
B) 600 units.
C) 650 units.
D) 700 units.
Ques. 2If a perfectly competitive market is in long-run equilibrium and there is a permanent decrease in demand, then
A) some firms will incur economic losses.
B) firms are no longer maximizing profits.
C) some firms must immediately exit.
D) each firm must produce less output in the new long run equilibrium and earn less economic profit.
Ques. 3Janae donates 50 to the local Humane Society. This means she can't buy that new pair of shoes, which according to her utility schedule, would have maximized her utility. This example illustrates the ________ aspect of behavioral economics.
A) bounded self-interest
B) bounded rationality
C) bounded will-power
D) empowerment effect
Ques. 4In the figure above, the quantity of high-skilled labor employed is
A) 2,000 hours per day.
B) 4,000 hours per day.
C) 5,000 hours per day.
D) 7,000 hours per day.
Ques. 5A Nash equilibrium occurs when both parties to a game end up worse off as a result of the decisions that are made. Is the previous definition of a Nash equilibrium correct or incorrect?
What will be an ideal response?
Ques. 6The price of one good changes and Sue is now at a point on her indifference curve where the marginal rate of substitution exceeds the relative price. Sue will now choose to buy ________ of the good that is measured on the ________.
A) more; x-axis
B) more; y-axis
C) the same quantity; x-axis
D) less; x-axis
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