A perfectly competitive industry's short-run supply curve is best described as
A. the horizontal summation of the individual firms' supply curves.
B. the upward sloping portion of the industry's marginal cost curve.
C. perfectly inelastic.
D. horizontal.
Answer: A
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Fred's income has just risen from $940 per week to $1,060 per week. As a result, he decides to purchase 9 percent more steak per week. The income elasticity of Fred's demand for steak is
A) 0.75. B) 0.90. C) 1.00. D) 1.33.
The quantity equation states that
A) M + V = P + Y. B) the money supply (M) divided by the velocity of money (V) equals the price level (P) divided by real output (Y), i.e., M/V = P/Y. C) M × V = P × Y. D) M - V = P - Y.
Are the values of the multipliers in the short run and the long run larger or smaller than 2?
What will be an ideal response?
So long as a monopolist finds itself in the situation where price is greater than average fixed cost at the profit-maximizing (loss-minimizing) level of output, the firm should continue to operate to minimize its losses
Indicate whether the statement is true or false