The idea that bursts of economic activity are based on the introduction of new inventions and innovations is at the heart of
a. the real business cycle theory
b. the innovation cycle theory
c. the economic theory of radical change
d. Adam Smith's economic growth theory
e. Keynes's economic growth theory
B
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Suppose the market demand elasticity is constant at -2, and there are three identical firms in the oligopolistic market. A Cournot firm's MPL = 1.2L-0.5, then the labor demand for a Cournot firm is
A) PL-0.5. B) 0.6PL-0.5. C) 0.2PL-2. D) PL-2.
Which of the following statements is true of a monopolist?
a. The firm charges the highest possible price. b. The firm always earns a profit. c. The firm might earn a profit in the long run. d. The firm generates a larger consumer surplus than a perfectly competitive firm. e. The firm is more production efficient than a perfectly competitive firm.