Term
| When a law is passed that requires businesses to obtain permission from government officials in order to enter a market, this is an example of |
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| To cut its losses, a firm that is optimistic about the future should shut down temporarily if price falls below |
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| If a product is manufactured under conditions of constant cost an increase in demand for the product will increase... |
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Definition
| equilibrium quantity, but equilibrium price will be unchanged in the long run. |
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Term
| The long-run supply curve for a product differs from the short-run supply curve in that the long-run supply curve is usaually |
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Term
| A profit-maximizing price searcher will expand output to the point where |
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Definition
| marginal revenue equals marginal cost |
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Term
| Which of the following is not a characteristic of a competitive price-searcher market? |
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Definition
| the entry barriers are high |
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Term
| suppose you were asked to determine whether a firm was a price taker or a competitive price searcher by lookingat a graph of the firms cost and revenue curves. The key is that for the competitive price searcher... |
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Definition
| the firms demand curve is downward sloping, not a horizontal line |
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Term
| to gain from price discrimination, price searchers must |
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Definition
| be able to prevent the resale of goods amongst buyers. |
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Term
| Cartel agreements are difficult to maintain because individual memebers |
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Definition
| are often unable to police the price and output policies of the members |
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Term
| the supply of human capital to a particular use is |
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Definition
| more inelastic in the short run since it takes time for persons to acquire a particular skill. |
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Term
| The marginal revenue product of a resource is best described as the |
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Definition
| change in total revenue resulting from employing and additional unit of the resource |
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Term
| Firms will only adopt more automated methods of production when |
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Definition
| b. they lower production costs. |
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Term
| if a firm refuses to high minorities because of personal prejudices then its profits will likely |
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Definition
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Term
| if the interest rate was 6 percent the combined net present value of two payments of $100, one to be received one year from now and the other two years from now, would be |
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Definition
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Term
| some governments enact usury laws, which hold the interest rate below its equilibrium level, Economic analysis indicates that under such laws, |
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Definition
| there would be a shortage of loanable funds, necessitatino rationing by some means other than the price. |
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Term
The samaritans dilemma describes the problem that exists when transfer programs designed to help the poor encourage choices that can promote or perpetuate a. poverty b, helthier lifestyles c. reduce birth rates d. decreased life expectancy |
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