In markets where the supply curve is vertical, changes in:
A. Demand will not cause the equilibrium price to change
B. Supply will not cause the equilibrium price to change
C. Demand will not cause the equilibrium quantity to change
D. Supply will not cause the equilibrium quantity to change
C. Demand will not cause the equilibrium quantity to change
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Suppose the marginal product of the second worker hired by a firm is 3, and the price of the last unit produced is $7 . Which of the following is true of the marginal revenue product of the second worker?
a. It must equal $21. b. It must be less than or equal to $21. c. It must be greater than or equal to $21. d. It equals $21 only if the firm is a price searcher (e.g., monopoly). e. We can conclude nothing about marginal revenue product.
Government provides a nonexcludable public good that the public demands and can't seem to acquire through the market. This is government
A) acting as a transfer mechanism. B) being non-productive. C) engaging in rent-seeking activities. D) being productive. E) a and c