The SRAS curve is ____ with real output levels that ____
a. upward sloping; vary positively with the price level
b. upward sloping; vary negatively with the price level
c. vertical; are equal to the natural level of real output at all price levels
d. vertical; can be either greater than or less than the natural level of real output
a
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If demand is elastic, an increase in price will increase total revenue
a. True b. False Indicate whether the statement is true or false
When firms are neither entering nor exiting a perfectly competitive market,
a. total revenue must equal total variable cost for each firm. b. economic profits must be zero. c. price must equal average variable cost for each firm. d. Both a and c are correct.
Arm and Hammer baking soda, which was originally developed as a cooking ingredient, is now being sold as an effective refrigerator deodorizer. This is an example of ____________ innovation.
A. positioning B. process C. distributed D. associative
Refer to the information provided in Figure 9.2 below to answer the question(s) that follow.
Figure 9.2Refer to Figure 9.2. If demand for wheat is D1, then in the long run
A. the firm will exit the industry. B. firms will increase their output so that their average fixed cost per unit falls. C. the firm will increase its price and output. D. new firms will enter the industry, and the current firms will expand production.