In the dominant firm model as evidenced by the production of iPods by Apple, the entrance of the competitive fringe firms has what effect on the dominant firm?
A) Its price is lower, but it produces more output.
B) Its price is lower, and it produces less output.
C) Its price is the same, but it produces less output.
D) Its price is higher, but it produces more output.
A
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Total income is defined as
A) the total amount earned by all resource owners. B) the sum of the total receipts of firms and the amount earned by households. C) the sum of the total receipts of firms less the amount of tax that must be paid. D) the total receipts of firms before taxes.
The poverty line is
a. established by the federal government. b. approximately equivalent to three times the cost of providing an adequate diet. c. an absolute level of income below which a family is deemed to be in poverty. d. All of the above are correct.