What does the supply curve tell us about the producer's minimum supply price?
What will be an ideal response?
For any quantity, the vertical distance between the supply curve and the x-axis shows the minimum price that suppliers must receive to produce that quantity of output. As a result, the price is the marginal cost of the last unit produced at this level of output.
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The nominal interest rate equals the:
A. inflation rate minus the real interest rate. B. real interest rate minus the inflation rate. C. real interest rate plus the inflation rate. D. real interest rate divided by the inflation rate.
The key to assessing the direction of discretionary fiscal policy is to observe changes in the cyclically adjusted deficit.
Answer the following statement true (T) or false (F)
Capital accumulation in a market system results from:
A. Increased purchases of consumers or households B. The "invisible hand" that guides the market C. Dollar votes by entrepreneurs and business owners D. Consumer sovereignty that prevails in the market
A fiduciary monetary system is
A. one which cannot have any inflation. B. dependent on the public's faith to accept the currency. C. fully backed by gold. D. dependent on barter for exchanges of goods and services.