If a competitive firm cannot earn profit at any level of output during a given short-run period, then which of the following is LEAST likely to occur?
A) It will shut down in the short run and wait until the price increases sufficiently.
B) It will exit the industry in the long run.
C) It will operate at a loss in the short run.
D) It will minimize its loss by decreasing output so that price exceeds marginal cost.
Ans: It will minimize its loss by decreasing output so that price exceeds marginal cost
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According to economic reasoning, you should offer one hour of volunteer service per week when
What will be an ideal response?
Comparing a perfectly competitive market to a monopoly, which of the following is true?
A. Price will be higher and quantity will be lower in the perfectly competitive market than in the monopoly. B. Price will be higher than marginal cost in the perfectly competitive market but will be equal to marginal cost in the monopoly. C. Price will be equal to marginal revenue in the perfectly competitive market but will be higher than marginal revenue in the monopoly. D. at that point on the market demand curve which intersects the marginal cost curve.
Refer to the above graph. What will shift D2 to D1?
Refer to the above graph. What will shift D2 to D1?
A. A decrease in productivity of labor
B. A decrease in the price of labor
C. A decrease in the price of complementary input
D. A decrease in the price of a substitute input (if the output effect > substitution effect)
Refer to the diagram. A shift of the aggregate demand curve from AD 1 to AD 0 might be caused by a(n):
A. decrease in aggregate supply.
B. decrease in the amount of output supplied.
C. increase in investment spending.
D. decrease in net export spending.