Referring to a production possibilities curve and the goods being compared, depict the economic event. Widespread use of the assembly line revolutionizes U.S. industry in the early 20th century (capital vs. consumer goods).
A. A movement from a point inside the curve to a point on the curve
B. A movement from a point on the curve to a point inside the curve
C. A shift in the entire curve to the right (outward)
D. A shift in the entire curve to the left (inward)
C. A shift in the entire curve to the right (outward)
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If marginal cost is less than average cost, average cost must fall when more units are produced.
Answer the following statement true (T) or false (F)
Suppose you observe an increase in the equilibrium price of coffee and a decrease in the equilibrium quantity of coffee. Of the options listed below, this is most consistent with:
A. a decrease in consumer income assuming coffee is a normal good. B. an increase in consumer income assuming coffee is a normal good. C. a decrease in the cost of producing coffee. D. an increase in the cost of producing coffee.
Cournot duopolists face a market demand curve given by P = 90 - Q where Q is total market demand. Each firm can produce output at a constant marginal cost of 30 per unit. If the duopolists behave as a shared monopoly, the equilibrium price and total quantity of output will be
A. Q = 45, P = 45. B. Q = 30, P = 60. C. Q = 40, P = 50. D. Q = 60, P = 30.
Which of the following changes is most likely to happen when there is a decrease in the supply of money in a market that was initially in equilibrium?
What will be an ideal response?