The short-run market supply curve in a perfectly competitive industry
a. shows the total quantity supplied by all firms at each possible price.
b. is perfectly inelastic at the market price.
c. is perfectly elastic at the market price.
d. shows the variety of prices that different firms will charge for a given quantity.
a
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Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
The majority of the income earned in the United States is paid in
A) wages. B) rent. C) profit. D) dividends. E) interest.
Required reserves are
A. equal to total reserves minus excess reserves. B. equal to total reserves minus checkable deposits. C. always less than total reserves. D. determined by multiplying the level of checkable deposits times the discount rate.
Suppose a production function is q = K1/2L1/3 and in the short run capital (K) is fixed at 100 . If the wage is $10 and the rental rate on capital is $20, the fixed cost is
a. $2,000 b. $200 c. $20,000 d. $0