In a diagram of perfect competition, the marginal revenue line moves up and down when there is exit and entry, respectively, because
A. the market demand for the good rises and falls when there is entry and exit, respectively.
B. the market supply for the good rises and falls when there is exit and entry, respectively.
C. the market supply for the good rises and falls when there is entry and exit, respectively.
D. the market demand for the good rises and falls when there is exit and entry, respectively.
Answer: C
You might also like to view...
Which of the following is included as investment in GDP?
i. cars produced during the year but unsold at the end of the year ii. new capital equipment produced and purchased during the year iii. purchases of a company's stocks and bonds A) iii only B) i only C) ii only D) i, ii, and iii E) i and ii
The problem caused when people are often reluctant to voluntarily pay for goods and services that provide benefits for everyone, even for those who don't pay is called the:
A. drop in the bucket hypothesis. B. rational ignorance problem. C. moral hazard problem. D. free-rider problem.
Accurately incorporating the present consequences of an action, but ignoring or underestimating the future consequences, is a description of present bias.
Answer the following statement true (T) or false (F)
The following factors have boosted farm income per farm household in the U.S., except:
A. Consolidation of farms B. Outmigration from farming C. Stronger or appreciating dollar D. Significant government subsidies