Suppose all firms in the market have the same costs as illustrated above. Of the following, which is the most likely action for a manager of the firms to take?
A) Increase the price of their grain.
B) Shut down.
C) Advertise their product.
D) Attempt to keep other firms from entering the market.
B) Shut down.
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Productive efficiency occurs at the point where
A. consumer surplus exceeds producer surplus by the greatest amount. B. the production technique minimizes cost. C. the production technique minimizes economic surplus. D. marginal benefit exceeds marginal cost by the greatest amount.
Refer to Table 11.1. What is the value of the government spending multiplier?
A) 1.67 B) 2.5 C) 3.33 D) 4
A movement along a supply curve is induced by a change in
A) input prices. B) taxes and subsidies. C) price expectations. D) the product's own price.
A consumer's budget line will shift to the left in a parallel manner if:
a. the price of the good on the X-axis increases. b. the price of the good on the Y-axis increases. c. the consumer's income increases d. the consumer's income decreases.