Which of the following statements is correct with respect to price elasticity of supply?
A. The price elasticity of supply tends to be greater as new firms can easily enter the market.
B. The price elasticity of supply tends to be greater as expanding existing production facilities is less costly.
C. The price elasticity of supply tends to be smaller as firms have limited production facilities.
D. All of these are correct.
Answer: D
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Information technologies ________ the demand for low-skilled labor, increase the ________ high-skilled labor, lower the wage rate of ________ labor, and raise the wage rate of ________ labor
A) decrease; demand for; low-skilled; high-skilled B) decrease; supply of; low-skilled; high-skilled C) do not change; supply of; high-skilled; low-skilled D) do not change; demand for; high-skilled; low-skilled
Suppose a supplier has an agreement with a firm to be paid $50,000 in 4 years. If the annual interest rate is 1 percent, the supplier would be indifferent between receiving ________ now and waiting 4 years to receive the $50,000.
A) 49,557.89 B) $48,049.02 C) $49,550.22 D) $48,076.92
If the marginal physical product of the fourth acre of land used were 10, the MPP of the fifth acre were 6, the MPP of the sixth acre were 2, the MPP of the seventh acre were 0, and the MPP of the eighth acre were -3, what is the maximum number of acres of land that would be used?
A. 4 B. 5 C. 6 D. 7
Refer to the diagram. This firm is selling its product in a(n):
A. purely competitive market.
B. oligopoly market.
C. monopolistically competitive market.
D. monopolistic market.