The perfectly competitive firm represented in Figure 9-10 has a short-run supply curve that follows the
a.
marginal cost curve
b.
vertical axis for prices less than $4.00 and follows the marginal cost curve for prices above $4.00
c.
vertical axis for prices less than $2.50 and follows the marginal cost curve for prices above $2.50
d.
vertical axis for prices less than $5.50 and follows the marginal cost curve for prices above $5.50
e.
horizontal axis for quantities less than 50 and follows the marginal cost curve for quantities above 50
c
You might also like to view...
On the graph above, suppose point G is on the short-run aggregate supply curve ? = 2.5 + 2 × (Y - 22 ) and aggregate demand curve Y = 29.25 - 0.5?
If output at point G is 25, and inflation expectations are adaptive, then the inflation rate next period will be ________. A) 11.5 B) 14.5 C) 8.5 D) 2.5 E) none of the above
Most responsible central banks publish their balance sheet:
A. quarterly. B. at least monthly. C. semi-annually. D. at least once a year.
Public saving is negative when:
A. the government's budget is balanced. B. there is a government budget deficit. C. after-tax income of households and businesses is greater than consumption expenditures. D. there is a government budget surplus.
Torrie is thinking of starting up a small business selling hand-painted wine glasses. She is considering setting up her business as a corporation. What is one advantage to Torrie of setting up her business as a corporation?
A) By setting up the business as a corporation, Torrie would have both ownership and control over the business. B) By setting up the business as a corporation, Torrie would not face double taxation. C) By setting up the business as a corporation, Torrie would have the ability to share risk with shareholders. D) All of the above would be advantages of setting up her business as a corporation.