Every firm that has the ability to affect the price of the good or service it sells will
A) have a perfectly elastic demand curve.
B) have a marginal revenue curve that lies below its demand curve.
C) earn a short-run profit but break even in the long run.
D) shut down in the short run.
Answer: B
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An increase in the expected price level will
a. increase labor supply, money wages, decrease the price level and income. b. decrease labor supply, increase money wages, decrease the price level and income. c. decrease labor supply, decrease money wages, and decrease the price level and income. d. increase labor supply, decrease money wages, decrease the price level, and increase income.
Which of the following statements is true?
a. Productivity is calculated as hours worked divided by output produced. b. Americans have a higher standard of living than Indonesians because American workers are more productive than Indonesian workers. c. Both A and B are correct. d. None of the above are correct.