The short-run supply curve and short-run marginal cost curve for a perfectly competitive firm coincide when the market price is greater than average variable cost
a. True
b. False
Indicate whether the statement is true or false
True
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The table above gives the demand schedule for a good. Using the midpoint method, find the price elasticity of demand between points A and B, between B and C, between C and D, and between D and E
What will be an ideal response?
Which of the following will most likely occur during the contractionary phase of a business cycle?
What will be an ideal response?
If a consumer reallocates his or her spending away from Good B and towards Good A, then the consumer's total utility will increase if:
A. MUA/PA > 0 and MUB/PB > 0. B. MUA/PA > MUB/PB. C. MUA/PA < 0 and MUB/PB < 0. D. MUA/PA < MUB/PB.
Assume that the quantity of apples is measured on the horizontal axis and the quantity of oranges is measured on the vertical axis. If the budget line rotates upward while keeping the same horizontal intercept, it implies that
A. the price of oranges has increased. B. the price of apples has decreased. C. the price of oranges has decreased. D. the available income has increased.