C Personal computers have become a commonplace appliance in many homes causing

C personal computers have become a commonplace

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C) Personal computers have become a commonplace appliance in many homes, causing an expedited tragedy of technology. D) The garment industry in the United States has largely shifted overseas, leaving many U.S. workers unemployed. 6. Which of the following statements is NOT correct? 7. Which of the following is TRUE? I. The market supply curve for labor can be upward sloping or downward sloping. II. As wages increase, the market labor supply curve slopes upward because some people are willing to work more hours. III. As wages increase in the health care industry, the market labor supply curve slopes upward because some workers from other industries decide to get jobs in health care. 8. Cellular phone service is an example of a good that is generally: 9. Firms that expect their products to be successful: A) will only participate in price advertising. B) can better signal the quality of their product if they do NOT advertise. C) have less of an incentive to advertise. D) have more of an incentive to advertise.
5 Use the following to answer questions 10-11: Table: Excellence Publishing Number of Workers Per Year Number of Books Edited Per Year 4 16,000 5 19,000 6 21,200 7 22,800 8 23,700 9 24,200 10. (Table: Excellence Publishing) Refer to the table. Each edited book sells for $50. How many people will the company hire per year as editing staff if the annual salary is $47,000 per staff member? 11. (Table: Excellence Publishing) Refer to the table. Each edited book sells for $50. What is the marginal product of labor for the sixth worker? 12. Which of the following statement(s) is/are TRUE? I. Because monopolistically competitive firms sell differentiated products, their demand curves are downward sloping. II. Monopolistically competitive firms earn above-normal profits because of high entry barriers. III. As firms enter a monopolistically competitive industry, the demand curves of the existing firms shift down and to the left.
6 13. Figure: Demand 3 Suppose that a two-firm oligopoly exists in this market. The two firms are initially competing on price and, as a result, are producing at the competitive output level with total production split evenly between the two firms. How much would each firm's profit increase by if the two firms agree to form a cartel and produce at the monopoly level of output? Assume that neither firm cheats on the cartel agreement.

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