PURE MONOPOLY GRAPH
I. Identify the curves in the graph:
If Curve A is the market demand and Curve D is the firm's average total cost
a) What does Curve B represent?
b) What does Curve C represent?
2. The Choices of the profit-maximizing firm:
FIRMS IN IMPERFECT AND PERFECT COMPETITION
1. Which graph would most likely represent a pure monopolist?
2. Which graph would most likely represent a perfectly competitive firm?
3. Which graph(s) could represent a monopolistically competitive firm?
A movement along a demand curve from one price-quantity combination to another is called:
- a change in quantity demanded.
If the demand for a good decreases as income decreases, it is a(n):
- normal good.
What might cause a demand function to shift to th
1st Labor markets, 2nd The perfectly competitive firm, 3rd cost of production
In competitive labor markets, _ demand labor and _ supply labor.
In a competitive labor market, if a firm pays a worker less than that worker's VMP, then in the l
The Scarcity Principle: having more of any good thing necessarily requires having less of something else
(because there are not enough resources to give everyone all they want). Resources are scarce.
2. The Cost-Benefit Principle: an action