In the above figure, if the market price is less than $7, the firm
A) produces 10 units.
B) produces 8 units.
C) produces 0 units.
D) produces 11 units.
C
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Markets can be least well-defined by
a. product similarity b. location c. price elasticity d. cross-price elasticity e. degree of firm interdependence
The behavior of market prices over time indicates that natural resources are
a. a limit to economic growth. b. unrelated to economic growth. c. not a limit to economic growth. d. the major determinant of productivity.
According to the quantity theory of money,
a) the quantity of money determines the long run equilibrium price level b) the amount of money in the economy determines the long run quantity of output c) money affects the aggregate supply curve, while the aggregate demand curve determines real output d) the money supply only affects the economy in the long run, not in the short run e) the full-capacity level of output determines the supply of money needed in the economy
As firms leave a monopolistically competitive industry that is sustaining economic losses:
A. the demand curves facing the remaining firms in the industry shift to the left. B. total quantity demanded increases for the industry. C. the demand curves facing the remaining firms in the industry shift to the right. D. the market supply curve shifts to the right.