The quantity of goods and services that can be produced by one worker or by one hour of work is referred to as

Suppose a firm in each of the two markets listed below were to increase its price by 25 percent. In which pair would the firm in the first market listed experience a dramatic decline in sales, but the firm in the second market listed would not?

a. restaurants and MP3 players b. electricity and natural gas c. corn and satellite radio d. rice and soybeans

Answer the following questions true (T) or false (F)

1. If a monopolist's price is $50 and average total cost is $43, then the average profit is $7. 2. If a monopolist's marginal revenue is $15 per unit and its marginal cost is $25, then to maximize profit the firm should decrease output. 3. In the short run, even if a monopoly's total revenue does not cover its variable costs, it should continue to produce because ultimately in the long run, the monopoly will start earning profits.