A monopolist's cost curves will
a. be identical to those of a competitive firm.
b. be higher than a competitive firm's cost curves.
c. be peculiar to the individual producer since there is only one.
d. drop more steeply as output increases.
c
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Suppose homebuyers believe that prices will fall over the next six months to a year. This would tend to
A) increase their demand for homes today. B) decrease their demand for homes six months from today. C) decrease their demand for homes today. D) have no effect on their demand today or six months from today.
You are an efficiency expert hired by a manufacturing firm that uses K and L as inputs. The firm produces and sells a given output. If w = $40, r = $100, MPL = 20, and MPK = 40 the firm:
A. is profit maximizing but not cost minimizing. B. is cost minimizing. C. should use less L and more K to cost minimize. D. should use more L and less K to cost minimize.