What other curve is the same as the market supply curve? Why are the curves the same?
What will be an ideal response?
The market supply curve is the same as the marginal social cost curve. The marginal social cost is the cost of producing one more unit of a good. For any quantity, the market supply curve shows the minimum price for which a producer is willing to produce another unit of the good. (This price is equal to the price on the supply curve that is vertically above each quantity.) A producer is willing to produce a unit of the good if the price covers all costs of the producing that unit, that is, if the price equals the cost of producing the unit. The cost of producing the unit is the marginal social cost. Hence along the market supply curve, the price associated with each quantity is equal to the marginal social cost of each quantity. Therefore the market supply curve is the same as the marginal social cost curve.
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A perfectly elastic long-run supply curve indicates
A) a decreasing-cost industry. B) a constant-cost industry. C) an increasing-cost industry. D) that some input prices change as firms enter and exit the industry.
Stockholders share in the profits of a corporation
a. in proportion to their years of stock ownership b. in proportion to their ownership of stock c. equally regardless of number of shares owned d. only if they participate in firm management decisions e. only if they attend stockholders' meetings
One of the determinants of real GDP is output per hour of labor. This statistic is called labor
A. force growth. B. productivity. C. force participation. D. force input.
Which of the following statements describes the situation shown?
a. There is an incentive for capital funds to flow from the United States to the United Kingdom.
b. The equilibrium interest rate is 5 percent in the United States and 3 percent in the United Kingdom.
c. U.S. investors will be tempted by the interest rate in the United Kingdom.
d. Investors in the United Kingdom will be tempted to keep their funds in their own country.