If the long-run market supply curve is perfectly elastic, an increase in demand will cause the final equilibrium to be at:
A. the original price but with a higher output.
B. a higher price with a higher output.
C. a higher price but with the same output.
D. the original price but at a smaller output.
Answer: A
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I. Facilitates the exchange of goods II. Reduces the incentive to barter A) I only B) II only C) Both I and II D) Neither I nor II
Based on the production data for Pat's Pizza Parlor in the above table, which worker has the largest marginal product?
A) Worker 1 B) Worker 2 C) Worker 3 D) Worker 4
Suppose the production function for good q is given by q = 3K + 2 L where K and L are capital and labor inputs. Consider three statements about this function: I. The function exhibits constant returns to scale. II. The function exhibits diminishing marginal productivities to all inputs. III. The function has a constant rate of technical substitution. Which of these statements is true?
a. All of them. b. None of them. c. I and II but not III. d. I and III but not II. e. only I.
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a. True b. False Indicate whether the statement is true or false