The invention of the cotton gin ushered in the Industrial Revolution and began a long period of technological innovation. What did this technological change do the short-run supply curve?
A) It moved the economy up along a stationary short-run aggregate supply curve.
B) It shifted the short-run aggregate supply curve to the left.
C) It moved the economy down along a stationary short-run aggregate supply curve.
D) It shifted the short-run aggregate supply curve to the right.
D
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A key difference between a monopoly and a perfectly competitive firm is that the monopolist
A) does not face fixed costs in the short run. B) has a marginal revenue curve that lies below its demand curve. C) has no marginal cost curve. D) faces a perfectly elastic demand for its product.
Explain the nature and consequences of asymmetric information for each of the following cases. What options are available in each instance to reduce the problem?
a. medical insurance b. issuance of credit cards c. professional athletes d. market for used appliances