Producers are willing to offer greater quantities for sale at higher prices because
What will be an ideal response?
they have the incentive to pay the increasing opportunity cost of resources necessary to attract them from alternative uses
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When demand increases and supply decreases by the same amount, the equilibrium quantity ________ and the equilibrium price ________
A) decreases; rises B) decreases; falls C) decreases; does not change D) decreases; might rise, fall, or not change E) does not change; might rise, fall, or not change
An outward shift of a nation's production possibilities frontier can occur due to
A) a natural disaster like a hurricane or bad earthquake. B) a change in the amounts of one good desired. C) an increase in the labor force. D) a reduction in unemployment.
An organization of employees that has the legal right to bargain with employers about wages and working conditions is called a
A) labor union. B) guild. C) monopsony. D) closed shop.
In what way is monopolistic competition more like competition, and in what way is it more like monopoly?
What will be an ideal response?