In Figure 2.1, a "S" for Supply would go in
A. Box 5.
B. Box 4.
C. Box 6.
D. Box 2.
Answer: D
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In a perfectly competitive market, if a firm finds it is producing an amount of output such that its marginal cost exceeds its price, it will
A) immediately shut down for the short run. B) be maximizing profits. C) increase its output to increase its profit. D) decrease its output to increase its profit.
If the unemployment rate is below its natural rate, then ________
A) output is above its potential level B) there is excess tightness in the labor market C) wages and prices will rise more rapidly and the AS curve will shift to the left D) all of the above E) none of the above
U.S. consumers would be better off if they bought only U.S.-produced goods
a. True b. False
All firms operating in a perfectly competitive market produce unique goods
a. True b. False Indicate whether the statement is true or false