A perfectly competitive industry must have a perfectly elastic long-run supply curve
a. True
b. False
Indicate whether the statement is true or false
False
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Consider the market for leather shoes. If producers believe the price of leather shoes will increase next month, today
A) the supply curve for leather shoes shifts rightward. B) the supply curve for leather shoes shifts leftward. C) there is a movement along the supply curve for leather shoes. D) the equilibrium price of leather shoes falls. E) the equilibrium quantity of leather shoes increases.
Which of the following would have the least amount of influence on a manager's choice of which inputs to employ in a production process?
A) The price of a competitor's output. B) The technology of the production process. C) The marginal productivity of the inputs that can be used in the production process. D) The prices of the inputs that can be used in the production process.
According to the Coase approach, to achieve socially optimal outcome, two sides must bargain. The bargaining might not be successful because
A) transaction costs are ignorable. B) firms engage in strategic bargaining. C) both sides have perfect information. D) None of the above.
Which of the following would cause a positive change in quantity demanded?
a. A rise in supply. b. A fall in supply. c. A rise in demand. d. A fall in demand.