All things equal, the price elasticity of supply
a. will be smaller in the short run than in the long run.
b. will be smaller in the long run than in the short run.
c. is the same for the short run and the long run.
d. approaches zero in the long run.
A
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In the above figure, ________ will shift in the demand curve from D to D1
A) an increase in income if pizza is an inferior good B) a decrease in the price of a sub sandwich, a substitute for pizza C) buyers' expectation that pizza will be less expensive next week D) a scientific article published that demonstrates eating pizza is good for one's health E) a fall in the cost of producing pizza
A perfectly competitive firm will maximize profits when
A) average cost is greater than marginal revenue. B) marginal cost is greater than marginal revenue. C) marginal cost is equal to marginal revenue. D) average cost is equal to average revenue.
In the long run, a decrease in aggregate demand will lead to a(n): a. decrease in price and output levels
b. increase in price and output levels. c. increase in the price level and a decrease in output. d. decrease in the price level and an increase in output. e. decrease in the price level and no change in output.
Refer to the figure below, which shows marginal benefits (MB) and marginal cost (MC) of activity A:
If the decision maker is choosing 300 units of activity A,
A. if the activity is increased by one unit, net benefits will increase by $20. B. if the activity is decreased by one unit, net benefits will decrease by $20. C. this level maximizes net benefits. D. both b and c E. all of the above