When new firms enter a perfectly competitive market, the market supply curve shifts ________ and the price ________
A) rightward; falls
B) rightward; rises
C) leftward; falls
D) leftward; rises
E) rightward; does not change
A
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Using the values for the marginal benefit and the marginal cost of a bushel of apples given in the table above, what is the allocatively efficient quantity of apples? Suppose 10 million bushels of apples are produced
Should the quantity be increased or decreased? What if 20 million bushels are produced; should the quantity be increased or decreased?
An external cost is:
A. the cost of a warehouse. B. a cost of production in some other market. C. the economic harm that a positive externality imposes on others. D. the economic harm that a negative externality imposes on others.
Smith and Jones comprise a two-person economy. Their hourly rates of production are shown in the accompanying table. Calculators Per HourComputers Per HourSmith10010Jones1206 Suppose Smith and Jones begin by producing 16 computers and 0 calculators per hour. If they wish to produce 14 computers and 40 calculators per hour efficiently, then Smith should spend ________, and Jones should spend ________.
A. 30 minutes making each; 30 minutes making each B. 1 hour making computers; 40 minutes making computers and 20 minutes making calculators C. 1 hour making computers; 20 minutes making computers and 40 minutes making calculators D. 45 minutes making computers and 15 making calculators; 1 hour making calculators
Capital goods are counted the same as consumer goods in the national product accounts.
Answer the following statement true (T) or false (F)