Refer to the given figure.
In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as:
A. aggregate demand shifting rightward.
B. short-run aggregate supply shifting downward.
C. aggregate demand shifting leftward.
D. long-run aggregate supply shifting leftward.
Answer: B
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If the marginal product of the second worker hired by a firm is 14 units and the price of the tenth unit of output is $7, then the marginal revenue product
a. of the second worker is $98, regardless of the structure of the product market b. of the second worker is $98 if the firm is a price searcher in the product market c. of the second worker is $98 if the product market is perfectly competitive d. of the tenth worker is $98 if the product market is perfectly competitive e. of the tenth worker is $98 if the firm is a price searcher in the product market
The existence of any consumer surplus in the market suggests that all of the following practices are possible in the market except which one?
A) third-degree price discrimination B) first-degree price discrimination C) second-degree price discrimination D) a single price is charged to all consumers