Explain how the short-run industry supply curve for a perfectly competitive market is derived.
What will be an ideal response?
At any given price, the quantities supplied by individual firms are simply added. The resulting curve is a horizontal summation of all the individual firms’ supply curves.
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Game theory would classify a cartel under the topic of
A) zero-sum games. B) cooperative games. C) noncooperative games. D) dominant-strategy games.
Any current outlay that is expected to yield a flow of benefits beyond one year in the future is:
a. a capital gain b. a wealth maximizing factor c. a capital expenditure d. a cost of capital e. a dividend reinvestment
The equilibrium price of a good is:
(a) The price with which everyone is unhappy. (b) The price at which the quantity demanded and quantity supplied of a good are equal. (c) The price set by the regulators in the economy. (d) Both (b) and (c).
In the above table, the marginal product of the second worker is
A. 68. B. 38. C. 98. D. It cannot be determined.