If a perfectly competitive industry uses only a small share of the available inputs in a resource market, then the long-run market supply curve for the industry will most likely be:
a. vertical
b. horizontal.
c. upward sloping.
d. downward sloping.
b
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Refer to Figure 4-3. If the market price is $3.00, what is the consumer surplus on the first ice cream cone?
A) $0.50 B) $1.00 C) $5.50 D) $9.00
Setting a fair price means
a. c and e b. lowering the price until the monopolist says "unfair" c. pricing at the point where average fixed and average variable costs sum to the price d. imposing unreasonable restrictions on the price making capability of competitive firms e. pricing as if the market were actually competitive
The "law" of diminishing returns
a. is deduced from the basic biochemical relationship of agricultural theory. b. was constructed as the basis of observation during experiments on the impact of fertilizer on output in the 1930s. c. is based on regular observations of input-output relationships over the last two centuries. d. is borrowed from physical laws related to conversion of matter and energy.
An example of a good that is not excludable is:
A. a candy bar. B. a movie in a theater. C. fish in the ocean. D. wireless connection to the Internet.