Refer to the above figure. The competitive firm's short run supply curve
A. starts at A and goes along the MC curve as quantity increases.
B. starts at B and goes along the ATC curve as quantity increases.
C. starts at A and goes along the AVC curve as quantity increases.
D. starts at B and goes along the MC curve as quantity increases.
Answer: A
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An objective analysis of "what is" in the economy is referred to as
A) positive economics. B) normative economics. C) command economics. D) implicit economics.
Which of the following is a final good or service?
A. Wood pulp purchased by a paper company B. A box of brownies purchased by your instructor C. A computer chip purchased by Banana Computers D. Potatoes purchased by a potato chip company
Suppose that the EPA has proposed strict controls on the amount of sulfur that diesel fuel contains. These controls were designed to fully offset the cost of pollution generated by diesel fuel vehicles. The effect of the regulation is estimated to increase the equilibrium price of a gallon of diesel fuel by 10 cents. Suppose that demand for diesel fuel is perfectly inelastic and supply has a positive slope. The effect of the regulation will ________ than if demand were not perfectly inelastic.
A. increase price and quantity by more B. increase price by more and reduce quantity by less C. decrease price and quantity by more D. increase price by less and reduce quantity by more
An outward bowed production possibilities curve illustrates
A. inefficient production. B. a lack of scarcity. C. the law of increasing additional cost. D. zero opportunity cost of moving from inefficient production to currently unobtainable production.