In the short run, nominal wages and other input prices are assumed to be:
A. Unresponsive to product price-level changes, but in the long run they are assumed to be responsive
B. Unresponsive to product price-level changes, and in the long run they are assumed to be unresponsive also
C. Responsive to product price-level changes, but in the long run they are assumed to be unresponsive
D. Responsive to product price-level changes, and in the long run they are assumed to be responsive also
A. Unresponsive to product price-level changes, but in the long run they are assumed to be responsive
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Prime Pharmaceuticals has developed a new asthma medicine, for which is has a patent. An inhaler can be produced at a constant marginal cost of $2/inhaler
The demand curve, marginal revenue curve, and marginal cost curve for this new asthma inhaler are in the figure above. With its patent giving it a monopoly for its new inhaler, if Prime Pharmaceuticals operates as a single-price monopoly, then consumer surplus is ________ and producer surplus is ________. A) zero; $64 million B) $32 million; $32 million C) $16 million; $32 million D) $16 million; $48 million.
To calculate GDP:
A. add the quantity of all goods and services sold in an economy in a year. B. add the quantity of all final goods and services produced in an economy in a year. C. weight the output of each good and service produced in an economy in a year by its price in that year and then total the result. D. weight the output of each final good and service produced in an economy in a year by its price in that year and then total the result.