Market supply is found by
A) vertically summing the relevant part of each individual producer's marginal cost curve.
B) horizontally summing the relevant part of each individual producer's marginal cost curve.
C) vertically summing each individual producer's average total cost curve.
D) horizontally summing each individual producer's average total cost curve.
Answer: B
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By not taking into account the possibility of consumer substitution, the CPI
a. understates the cost of living. b. overstates the cost of living. c. may overstate or understate the cost of living, depending on how quickly prices rise. d. may overstate or understate the cost of living, regardless of how quickly prices rise.
A firm's demand curve for labor coincides with the:
A. marginal cost curve. B. average cost curve. C. marginal revenue curve. D. marginal revenue product curve.
Which of the following best exemplifies the relationship between a capital good and a consumer good or service?
a. A smartphone and an earplug b. A brand new Dell computer and printer c. A Caterpillar earth-moving front loader and its operator d. A commercial baking oven and loaves of bread
How are potential GDP, full employment and the LAS curve related?
What will be an ideal response?