econ

The equality-efficiency trade-off would be most closely associated with which one of the following statements?

If cutting the income pie in more equal slices tends to shrink the pie, what amount of shrinkage will society tolerate?

Which is a likely characteristic of a differentiated oligopolistic market?

Price and output decisions of firms are interdependent.

The best example of a monopsonist is:

a large army post located in a small community.

A profit-maximizing firm in the short run will expand output:

as long as marginal revenue is greater than marginal cost.

The basic difference between the short run and the long run is that:

at least one resource is fixed in the short run, while all resources are variable in the long run.

A nondiscriminating pure monopolist is generally viewed as:

both productively and allocatively inefficient.

Successful price discrimination requires that:

buyers with inelastic demand be charged higher prices than buyers with elastic demand.

Exclusive unionism has the economic effect of:

decreasing the supply of labor.

The kinked-demand curve is based upon the assumption that an oligopolist's rivals will:

follow a price cut, but ignore a price increase.

A nondiscriminating pure monopolist's demand curve:

lies above its marginal revenue curve.

The greater the degree of inequality in the size distribution of income, the more bowed will be the Lorenz curve toward the:

lower right-hand corner.

A firm in a purely competitive product market finds it must increase wages to attract extra workers. The firm will hire labor up to the point where the marginal:

revenue product of labor equals the wage rate.