Which of the following statements is true about supply?
A. As price decreases, producers are willing and able to put more of the good on the market for sale.
B. Supply refers to the amount of inventory that sellers have in their warehouses.
C. As price increases, producers are willing and able to put more of the good on the market for sale.
D. There is an inverse relationship between price and quantity supplied.
Answer: C
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A. double B. less than double C. more than double D. remain constant
In monopolistic competition, in the short run a firm maximizes its profit by selecting an output at which marginal cost equals
A) average total cost. B) marginal revenue. C) price. D) zero.
Because of college financial aid packages, the cost of college is highest for ______.
a. the poor b. most of the middle class c. the rich d. first generation students
Thinking at the margins means deciding about
a. maximizing goods and services. b. investing with borrowed money. c. adding or subtracting one additional unit of some resource. d. increasing or decreasing technical know-how.