Seller A has an upward-sloping supply curve and is willing to supply 400 units of a commodity at a price of $5 per unit. Seller A is now willing to supply 500 units at a price of $5 per unit. Evidently, seller A has experienced a(n):
A. increase in supply.
B. decrease in supply.
C. increase in quantity supplied.
D. decrease in the quantity supplied.
Answer: A
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Joe runs a business and needs to decide how many hours to stay open. Figure 2.2 illustrates his marginal benefit of staying open for each additional hour. Suppose that we observe Joe staying open 5 hours per day
If he is following the marginal principle, what must his marginal cost per hour be? A) $16 B) $24 C) $32 D) $40
Market structure
a. has no influence on a firm's decision making b. applies only to industries regulated by the government c. is determined entirely by demand conditions in the industry d. influences the forms of competition among firms e. does not affect product price or quantity of output
When a corporation uses profits to pay for the purchase of new capital equipment, this is known as
A) reinvestment. B) a coupon payment. C) dividend. D) collusion.
When the marginal product of labor ________ the average product of labor, then the average product is maximized.
A. is less than B. is greater than C. equals D. The average product of labor is never maximized.