In a perfectly competitive market, an increase in output could be caused by
a. decrease in consumer demand
b. an unavoidable increase in fixed costs
c. higher input prices
d. an increase in consumer demand
D
You might also like to view...
Which of the following is true?
i. The easier it is to find substitutes for a good, the more price elastic the demand for the good is. ii. The demand for a good is more price elastic the smaller the proportion of income spent on it. iii. If demand is price elastic, lowering the price leads to a decrease in total revenue. A) only i B) only ii C) only iii D) i and ii E) i and iii
Collusion and cartels are frequently legal in Europe
a. True b. False
Suppose Mary is willing to pay up to $15,000 for a used Ford pick-up truck. If she buys one for $12,000, her ________ would be ________.
A. cost; $15,000 B. economic surplus; $12,000 C. benefit; $12,000 D. economic surplus; $3,000
Which of the following factors are involved in monopolistic competition?
a. operates at minimum ATC; allocative inefficiency; productive efficiency b. fails to operate at minimum ATC; allocative inefficiency; productive inefficiency c. operates at minimum ATC; allocative efficiency; productive inefficiency d. fails to operate at minimum ATC; allocative efficiency; productive efficiency