Relative to a profit-maximizing competitively organized industry that is producing 6,000 units of output at a price of $7 per unit, firms acting collusively under the same circumstances would produce ________ units of output and charge a price of ________ per unit.
A. more than 6,000; more than $7
B. less than 6,000; less than $7
C. 6,000; $7
D. less than 6,000; more than $7
Answer: D
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Which of the following best describes the impact of technological change on labor? a. Technology causes unemployment in the short run and lower incomes in the long run
b. Technology causes unemployment in the short run and higher incomes in the long run. c. Technology causes unemployment in the long run and higher incomes in the short run. d. Technology causes unemployment in the long run and lower incomes in the short run. e. Technology causes unemployment and lower incomes in both the long run and the short run.
Costume jewelry is produced in a monopolistically competitive market. One producer produces 700 necklaces and at that output level, MR = MC = $3 . We know then that
a. the price is $3 b. economic profit is $2,100 c. the price is higher than $3 d. new firms will enter the market e. the firms should produce the 700 necklaces in the short run, but shut down in the long run