If the price of a product being sold in a perfectly competitive market decreases
A. the MFC curve shifts to the left.
B. the MRP curve shifts to the left.
C. the MRP curve shifts to the right.
D. the MFC curve shifts to the right.
Answer: B
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Safe Bank has an outside display which has the time and temperature that is always correct. This is an example of
A) an interference in the workings of the price system. B) a breakdown in communication between the bank and its customers. C) a negative externality. D) a positive externality.
The potential for asymmetric information to bring about a general decline in product quality in an industry is known as the ________ problem
A) moral hazard B) liability C) capture D) lemons
If the short-run average variable cost of production for a firm is decreasing, then it follows that:
A. Average variable cost must be above average fixed cost B. Marginal cost must be below average variable cost C. Average fixed cost must be constant D. Marginal cost must be decreasing
Also, the spread of COVID 19 has increased the prices of food products. Explain the effect of a rise in the prices on both the consumer and the producer surpluses.
What will be an ideal response?