The competitive firm's short-run supply curve is its
a. marginal revenue curve, but only the portion where marginal revenue exceeds marginal cost.
b. marginal cost curve.
c. marginal cost curve, but only the portion above the minimum of average total cost.
d. marginal cost curve, but only the portion above the minimum of average variable cost.
d
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Under monopolistic competition
A. there is no distinction between the short run and the long run. B. there are very few firms in the industry. C. all the firms produce an identical product. D. each firm breaks even in the long run.
Value added is calculated by:
A. subtracting the cost of materials used in production from the value of sales. B. adding the cost of materials used in production to the value of sales. C. adding the value of output to the value of inputs. D. subtracting the value of sales from the cost of materials used in production.
Suppose the banking system has $100,000 in outstanding deposits and actual reserves of $35,000. If the required reserve ratio is 20 percent, the maximum amount the banking system can add to the money supply is:
A. $175,000. B. $500,000. C. $75,000. D. $15,000.
Answer the following statement true (T) or false (F)
1) Logrolling can either increase or diminish economic efficiency. 2) Even if a majority of the population wants a law and the law is passed, the outcome may still be economically inefficient. 3) The paradox of voting is that under majority voting rules the median voter decides the election outcome. 4) Majority voting assures that government will provide a public good if it yields total benefits in excess of total costs.