Mary Ann and Don provide catering services in a perfectly competitive market. When they started in business, the going rate was $50 per person per meal. After the price increased to $60, they became willing to supply more meals. Their response to the price change is shown by
a. a rightward shift of the market supply curve
b. a leftward shift of the market supply curve
c. movement up along their firm's marginal cost curve
d. movement down along their firm's marginal cost curve
e. a rightward shift in their demand for jobs
C
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A perfectly competitive firm's supply curve is its
A) marginal cost curve above its minimum average fixed cost. B) marginal cost curve above its minimum average total cost. C) marginal cost curve. D) marginal cost curve above its minimum average variable cost.
Diseconomies of scale are associated with
a. Inefficiencies b. Cost reduction c. Improvement in technology d. Division of labor
All externalities:
A. are harmful to society and create costs external to the decision maker. B. are beneficial to society and create benefits external to the decision maker. C. create either a cost or benefit to a person other than the person who caused it. D. are addressed by the government through taxation.
An increase in unemployment, ceteris paribus, may
A. Lead to decreased government expenditures. B. Reduce a budget surplus. C. Reduce a budget deficit. D. Lead to increased government revenues.