Which of the following will cause an outward (rightward) shift of the supply curve for TVs?
A. A decrease in the price of TVs
B. An improvement in TV technology
C. An increase in the price of TVs
D. A decrease in the number of firms producing TVs
B. An improvement in TV technology
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Under conditions of perfect competition, short-run equilibrium does not necessarily exist where
a. profit is maximized or loss minimized. b. MR = AR. c. MR = MC. d. MR = ATC.
The principle marginal revenue equal-marginal-cost rule for maximizing profit
A) does not apply to firms in the monopoly or oligopolistic industries. B) applies only for firm in perfect competition but not in monopolistic competition. C) applies to new firms but not to existing firms in an industry. D) applies to all the firms in all industries.
If the substitution effect is always greater than the income effect, then an individual's labor supply curve will
a. bend backward b. always have a positive slope c. always have a negative slope d. be vertical e. be horizontal
Adam Smith believed that if people were free to pursue their own interests,
a. public interest would be served quite well. b. less would be produced than if altruism were the guiding principle. c. they would generally apply their talents to unproductive activities that would generate little value to society. d. they would have little incentive to undertake productive activities.