The purely competitive firm's supply curve:
A. is upward sloping when some inputs are fixed.
B. is perfectly inelastic in the short run.
C. is horizontal in the long run.
D. becomes less elastic in the long run.
Answer: A
You might also like to view...
Explain what a cartel is and the difficulties faced in maintaining a cartel
What will be an ideal response?
Refer to Figure 7.4. This isoquant exhibits:
A. increasing MRTSLK as we move to the southeast along the isoquant.
B. declining MRTSLK as we move to the northwest along the isoquant.
C. constant MRTSLK as we move along the isoquant.
D. declining MRTSLK as we move to the southeast along the isoquant.
Deficit financing
A) is when the government adjusts taxes to raise money to pay for government projects. B) is the mechanism behind the Laffer curve. C) is how the automatic stabilizers work. D) is when discretionary fiscal policy leads to spending more than is collected in taxes.
The small-country monopolist's free-trade equilibrium occurs:
a. where MC = MR, where MR is declining and below price. b. at the "world" price, which becomes a perfectly elastic demand curve for the monopoly firm and the firm's marginal cost curve. c. where the home demand is completely satisfied by foreign importers. d. at minimum marginal cost.